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Institutional features of wage bargaining in 23 European countries, the US and Japan

  • Philip Ducaju

    ()

    (National Bank of Belgium, Research Department)

  • Erwan Gautier

    ()

    (Banque de France)

  • Daphné Momferatou

    ()

    (European Central Bank)

  • Mélanie Ward-Warmedinge

    ()

    (European Central Bank)

This paper presents information on wage-bargaining institutions, collected for 23 European countries, plus the US and Japan using a standardised questionnaire. Our data provide information from the years 1995 and 2006, for four sectors of activity and the aggregate economy. The main findings include a high degree of regulation in wage-setting in most countries. Although union membership is limited in many of them, union coverage is high and almost all countries also have some form of national minimum wage. Most countries negotiate wages on several levels, the sectoral level still being the most dominant, with an increasingly important role for bargaining at the individual firm level. The average length of collective bargaining agreements is found to lie between one and three years. Most agreements are strongly driven by developments in prices and eleven of the countries surveyed have some form of indexation mechanism which affects wages. Cluster analysis identifies three country groupings of wage-setting institutions

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Paper provided by National Bank of Belgium in its series Working Paper Research with number 154.

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Length: 56 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:nbb:reswpp:200812-3
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  1. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Departmental Working Papers 2002-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  2. William T. Dickens & Lorenz Goette & Erica L. Groshen & Steinar Holden & Julian Messina & Mark E. Schweitzer & Jarkko Turunen & Melanie E. Ward, 2007. "How Wages Change: Micro Evidence from the International Wage Flexibility Project," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 195-214, Spring.
  3. John B. Taylor, 1982. "Union Wage Settlements During a Disinflation," NBER Working Papers 0985, National Bureau of Economic Research, Inc.
  4. Cecchetti, Stephen G, 1987. "Indexation and Incomes Policy: A Study of Wage Adjustment in Unionized Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 391-412, July.
  5. repec:cup:cbooks:9780521590730 is not listed on IDEAS
  6. 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.
  7. repec:dgr:kubcen:1998116 is not listed on IDEAS
  8. Robert J. Barro & David B. Gordon, 1983. "Rules, Discretion and Reputation in a Model of Monetary Policy," NBER Working Papers 1079, National Bureau of Economic Research, Inc.
  9. Robert J. Flanagan, 1999. "Macroeconomic Performance and Collective Bargaining: An International Perspective," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1150-1175, September.
  10. Hartog, Joop & Leuven, Edwin & Teulings, Coen N, 1997. "Wages and the Bargaining Regime in a Corporatist Setting: The Netherlands," CEPR Discussion Papers 1706, C.E.P.R. Discussion Papers.
  11. Tobin, James, 1972. "Inflation and Unemployment," American Economic Review, American Economic Association, vol. 62(1), pages 1-18, March.
  12. repec:cup:cbooks:9780521049399 is not listed on IDEAS
  13. Fregert, Klas & Jonung, Lars, 1998. "Monetary Regimes And Endogenous Wage Contracts: Sweden 1908-1995," Working Papers 1998:3, Lund University, Department of Economics, revised 21 Apr 1999.
  14. Acocella, Nicola & Di Bartolomeo, Giovanni & Hibbs Jr., Douglas A., 2004. "Labor market regimes and the effects of monetary policy," Working Papers in Economics 145, University of Gothenburg, Department of Economics, revised 22 Apr 2005.
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