Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58950
Authors: 
Dahl, Christian M.
le Maire, Daniel
Munch, Jakob R.
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6176
Abstract: 
This paper 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.
Subjects: 
wage bargaining
decentralization
wage dispersion
JEL: 
J31
J51
C23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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