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The effects of the decentralization of collective bargaining on wages and wage dispersion: Evidence from the Finnish forest and IT industries

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  • Antti Kauhanen

Abstract

Recently, Finnish forest industries shifted from sectoral collective bargaining to firm‐level bargaining, and the IT services industry shifted to a hybrid of sector‐ and firm‐level bargaining. Using administrative data on monthly wages and the synthetic difference‐in‐differences method, I study the causal effects of collective bargaining decentralization on the level and dispersion of wages. Despite the substantial change in the level of collective bargaining, I generally find muted effects on the level and dispersion of wages. I find positive and economically and statistically significant effects on wage levels and within‐firm wage dispersion only for blue‐collar workers in the paper industry.

Suggested Citation

  • Antti Kauhanen, 2024. "The effects of the decentralization of collective bargaining on wages and wage dispersion: Evidence from the Finnish forest and IT industries," British Journal of Industrial Relations, London School of Economics, vol. 62(2), pages 319-334, June.
    • Handle: RePEc:bla:brjirl:v:62:y:2024:i:2:p:319-334
    DOI: 10.1111/bjir.12781
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    1. Calmfors, Lars, 2025. "Pattern Bargaining as a Means to Coordinate Wages in the Nordic Countries," Working Paper Series 1517, Research Institute of Industrial Economics.

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