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Working Paper 03-11 - Niveau de décentralisation de la négociation et structure des salaires

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Listed author(s):
  • Salimata Sissoko

Abstract

This study aims to analyse the effects of the decentralization level of collective wage bargaining on the wage level and the wage dispersion in Belgium. For this purpose, we have constructed a composite indicator of collective bargaining decentralization, based on variables that determine collective bargaining. Our results indicate the presence of a significant wage bonus and wider wage disparity in industries where collective bargaining is decentralized. Furthermore, we compare these results with those that use as an indicator of bargaining decentralization, the presence of collective agreements at company level, a commonly used indicator in the literature. We notice that this latter indicator seems to underestimate the degree of bargaining decentralization and thus also its effects on the wage structure. One can explains this result by the fact that in Belgium, besides firm collective agreements, the bargaining system also provides mechanisms that enable firms to distance themselves from collective agreements set at industry level.

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Paper provided by Federal Planning Bureau, Belgium in its series Working Papers with number 1103.

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Date of creation: 15 Feb 2011
Handle: RePEc:fpb:wpaper:1103
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Keywords: Decentralisation; Wage bargaining; Wage dispersion; Wage differentials;

Find related papers by JEL classification:

  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
  • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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  1. Plasman, Robert & Rusinek, Michael & Rycx, Francois, 2006. "Wages and the Bargaining Regime under Multi-level Bargaining: Belgium, Denmark and Spain," IZA Discussion Papers 1990, Institute for the Study of Labor (IZA).
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  6. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
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  8. Ana Rute Cardoso & Pedro Portugal, 2005. "Contractual Wages and the Wage Cushion under Different Bargaining Settings," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 875-902, October.
  9. Carlo Dell'Aringa & Laura Pagani, 2007. "Collective Bargaining and Wage Dispersion in Europe," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 29-54, 03.
  10. Ordine, Patrizia, 1995. "Wage drift and minimum contractual wage: Theoretical interrelationship and empirical evidence for Italy," Labour Economics, Elsevier, vol. 2(4), pages 335-357, December.
  11. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  12. Kahn, Lawrence M, 1998. "Collective Bargaining and the Interindustry Wage Structure: International Evidence," Economica, London School of Economics and Political Science, vol. 65(260), pages 507-534, November.
  13. Dell'Aringa, Carlo & Lucifora, Claudio, 1994. "Collective bargaining and relative earnings in Italy," European Journal of Political Economy, Elsevier, vol. 10(4), pages 727-747, December.
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