---
title: "Dark Half: Decentralized Bargaining and Well-being at Work"
authors:
  - name: "Maczulskij, Terhi"
    url: "https://www.etla.fi/henkilot/maczulskij-terhi/"
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      - "https://sites.google.com/view/terhi-maczulskij"
  - name: "Haapanen, Mika"
  - name: "Kauhanen, Antti"
    url: "https://www.etla.fi/henkilot/kauhanen-antti/"
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      - "https://sites.google.com/view/antti-kauhanen/home"
  - name: "Riukula, Krista"
    url: "https://www.etla.fi/henkilot/riukula-krista/"
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      - "https://www.kristariukula.com/"
date_published: "2021-08-23"
series: "ETLA Working Papers"
series_number: "89"
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-89.pdf"
keywords:
  - "Decentralization"
  - "Collective agreements"
  - "Mental health disorder"
  - "Sickness absence"
  - "Job separation"
  - "Blue-collar"
  - "White-collar"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Working-Papers-89"
abstract: "Using information on collective agreements and administrative data on mental ill-health, sickness absence, and job separations, we study the effect of decentralization on well-being at work in Finland. Our regression results with individual-and firm-level fixed effects show that decentralized wage bargaining leads to distinct outcomes for different employee groups. For example, white-collar employees in white-collar intensive firms show increased well-being at work. In contrast, all employees in blue-collar intensive firms show quite strong and negative responses to decentralization. Decentralization affects mostly job-separation behavior and mental ill-health, whereas no consistent effects for sickness absence are observed. Whether the mechanisms between decentralization and worker’s well-being is explained by pay dispersion, wage level, or different preferences toward wage policy needs to be explored further."
---

# Dark Half: Decentralized Bargaining and Well-being at Work

**Published:** 2021-08-23  
**Categories:** Publikationer, Working Papers  
**URL:** https://www.etla.fi/sv/publikationer/dark-half-decentralized-bargaining-and-well-being-at-work/

#### Abstract

Using information on collective agreements and administrative data on mental ill-health, sickness absence, and job separations, we study the effect of decentralization on well-being at work in Finland. Our regression results with individual-and firm-level fixed effects show that decentralized wage bargaining leads to distinct outcomes for different employee groups. For example, white-collar employees in white-collar intensive firms show increased well-being at work. In contrast, all employees in blue-collar intensive firms show quite strong and negative responses to decentralization. Decentralization affects mostly job-separation behavior and mental ill-health, whereas no consistent effects for sickness absence are observed. Whether the mechanisms between decentralization and worker’s well-being is explained by pay dispersion, wage level, or different preferences toward wage policy needs to be explored further.

---

## Additional Information

**Kirjoittajat:** Maczulskij, Terhi - Haapanen, Mika - Kauhanen, Antti - Riukula, Krista

**Publication Research:** No

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-working-papers-89-kansi.jpg

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-89.pdf

**Key Words:** Decentralization, Collective agreements, Mental health disorder, Sickness absence, Job separation, Blue-collar, White-collar

**Jel:** J31, J51, J52

**Paivays:** 23.08.2021

**Sivuja:** 42

**Kieli:** en

**Sarja:** ETLA Working Papers

**Sarja Nro:** 89

**Issn:** 2323-2420, 2323-2439 (Pdf)

**Saatavuus:** 2

65344

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