Wage Dispersion and Decentralization of Wage Bargaining
By Christian M. Dahl, Daniel le Maire, J. Munch. Journal of Labor Economics, 2013
129 citations recorded by the source corpus.
This article studies how decentralization of wage bargaining from sector to firm level influences wage levels and wage dispersion. We use detailed panel data covering a period of decentralization in the Danish labor market. The decentralization process provides variation in the individual worker’s wage-setting system that facilitates identification of the effects of decentralization. We find a wage premium associated with firm-level bargaining relative to sector-level bargaining and that the return to skills is higher under the more decentralized wage-setting systems. Using quantile regression, we also find that wages are more dispersed under firm-level bargaining compared to more centralized wage-setting systems.
Subfields: Economics and Econometrics, Political Science and International Relations
View Paper: https://www.semanticscholar.org/paper/397613748494ba336abc8ec1605cbb635e64a6fd
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In Economics and Econometrics
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- Giovanni Peri
- M. Tabellini
- Max Nathan
- David Popp
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- Ethan G. Lewis
- William R. Kerr
In Political Science and International Relations
Citations in the corpus
- The effects of Labour Market Reforms upon Unemployment and Income Inequalities: an agent based model (2018, unknown): “…since the early 1980s a large ensemble of empirical analyses on longitudinal microdata has been finding that unions are able to mitigate wage inequality across workers (see Freeman, 1980 for USA; Hibbs Jr and Locking, 2000 for Sweden; Manacorda, 2004 for Italy; Dahl et al. , 2013 for Denmark).”
- Immigrants' Effect on Native Workers: New Analysis on Longitudinal Data (2016, background): “Only around 10 percent of the workers who move across establishments each year change municipality.19”
- The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data (2014, unknown): “Decentralization has increased wage dispersion in the Danish labor market (Dahl et al. 2013), implying that wages better reflect worker and firm characteristics, such as individual workers' marginal productivity.”