--- title: "Heterogeneous Impacts of the Decentralization of Collective Bargaining" authors: - name: "Kauhanen, Antti" url: "https://www.etla.fi/henkilot/kauhanen-antti/" sameAs: - "https://orcid.org/0000-0001-9506-1241" - "https://scholar.google.com/citations?user=AjYlgDoAAAAJ" - "https://twitter.com/Antti_Kauhanen" - "https://sites.google.com/view/antti-kauhanen/home" - name: "Maczulskij, Terhi" url: "https://www.etla.fi/henkilot/maczulskij-terhi/" sameAs: - "https://orcid.org/0000-0002-4325-2254" - "https://scholar.google.com/citations?user=RqySUVUAAAAJ" - "https://twitter.com/maczulskij" - "https://sites.google.com/view/terhi-maczulskij" - name: "Riukula, Krista" url: "https://www.etla.fi/henkilot/riukula-krista/" sameAs: - "https://orcid.org/0000-0002-0117-0816" - "https://scholar.google.com/citations?user=WGOHyykAAAAJ" - "https://twitter.com/kristariukula" - "https://www.kristariukula.com/" date_published: "2020-11-11" series: "ETLA Working Papers" series_number: "83" issn: - "2323-2420" - "2323-2439" jel_codes: - "J31" - "J51" - "J52" language: "en" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-83.pdf" keywords: - "Decentralization" - "Collective agreements" - "Wage bargaining" - "Wage increase" - "Wage dispersion" identifier: "https://www.etla.fi/julkaisut/id/ETLA-Working-Papers-83" abstract: "This paper analyses the heterogeneous effects of the decentralization of collective bargaining on the incidence of wage increases and wage dispersion in Finland. We use linked employer-employee panel data for the 2005–2013 period, which includes major changes in bargaining systems and economic conditions. Our regression results from models with high-dimensional individual and firm fixed effects show that decentralized bargaining leads to very different outcomes for blue- and white-collar employees. Decentralized bargaining decreases wage dispersion among blue-collar employees and slightly increases it among white-collar employees. Decentralization also affects the incidence of wage increases differently for blue- and white-collar employees. We argue that these differences reflect the different preferences of the employee groups. We also show that the fallback option in local negotiations affects the decentralization outcomes." --- # Heterogeneous Impacts of the Decentralization of Collective Bargaining **Published:** 2020-11-11 **Categories:** Publications, Working Papers **Tags:** ETLA-WEF **URL:** https://www.etla.fi/en/publications/heterogeneous-impacts-of-the-decentralization-of-collective-bargaining/ #### Abstract This paper analyses the heterogeneous effects of the decentralization of collective bargaining on the incidence of wage increases and wage dispersion in Finland. We use linked employer-employee panel data for the 2005–2013 period, which includes major changes in bargaining systems and economic conditions. Our regression results from models with high-dimensional individual and firm fixed effects show that decentralized bargaining leads to very different outcomes for blue- and white-collar employees. Decentralized bargaining decreases wage dispersion among blue-collar employees and slightly increases it among white-collar employees. Decentralization also affects the incidence of wage increases differently for blue- and white-collar employees. We argue that these differences reflect the different preferences of the employee groups. We also show that the fallback option in local negotiations affects the decentralization outcomes. --- ## Additional Information **Kirjoittajat:** Kauhanen, Antti - Maczulskij, Terhi - Riukula, Krista **Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-working-papers-83-kansi-scaled.jpg **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-83.pdf **Key Words:** Decentralization, Collective agreements, Wage bargaining, Wage increase, Wage dispersion **Jel:** J31, J51, J52 **Paivays:** 11.11.2020 **Sivuja:** 40 **Kieli:** en **Sarja:** ETLA Working Papers **Sarja Nro:** 83 **Issn:** 2323-2420, 2323-2439 (Pdf) **Saatavuus:** 2 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-Working-Papers-83", "headline": "Heterogeneous Impacts of the Decentralization of Collective Bargaining", "inLanguage": "en", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2020-11-11T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Kauhanen, Antti", "url": "https://www.etla.fi/henkilot/kauhanen-antti/", "sameAs": [ "https://orcid.org/0000-0001-9506-1241", "https://scholar.google.com/citations?user=AjYlgDoAAAAJ", "https://twitter.com/Antti_Kauhanen", "https://sites.google.com/view/antti-kauhanen/home" ] }, { "@type": "Person", "name": "Maczulskij, Terhi", "url": "https://www.etla.fi/henkilot/maczulskij-terhi/", "sameAs": [ "https://orcid.org/0000-0002-4325-2254", "https://scholar.google.com/citations?user=RqySUVUAAAAJ", "https://twitter.com/maczulskij", "https://sites.google.com/view/terhi-maczulskij" ] }, { "@type": "Person", "name": "Riukula, Krista", "url": "https://www.etla.fi/henkilot/riukula-krista/", "sameAs": [ "https://orcid.org/0000-0002-0117-0816", "https://scholar.google.com/citations?user=WGOHyykAAAAJ", "https://twitter.com/kristariukula", "https://www.kristariukula.com/" ] } ], "abstract": "This paper analyses the heterogeneous effects of the decentralization of collective bargaining on the incidence of wage increases and wage dispersion in Finland. 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