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Working Paper 03-11 - Niveau de décentralisation de la négociation et structure des salaires

Author

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  • Salimata Sissoko

Abstract

This study aims to analyse the effects of the decentralization level of collective wage bargaining on the wage level and the wage dispersion in Belgium. For this purpose, we have constructed a composite indicator of collective bargaining decentralization, based on variables that determine collective bargaining. Our results indicate the presence of a significant wage bonus and wider wage disparity in industries where collective bargaining is decentralized. Furthermore, we compare these results with those that use as an indicator of bargaining decentralization, the presence of collective agreements at company level, a commonly used indicator in the literature. We notice that this latter indicator seems to underestimate the degree of bargaining decentralization and thus also its effects on the wage structure. One can explains this result by the fact that in Belgium, besides firm collective agreements, the bargaining system also provides mechanisms that enable firms to distance themselves from collective agreements set at industry level.

Suggested Citation

  • Salimata Sissoko, 2011. "Working Paper 03-11 - Niveau de décentralisation de la négociation et structure des salaires," Working Papers 201103, Federal Planning Bureau, Belgium.
    • Handle: RePEc:fpb:wpaper:201103
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    More about this item

    Keywords

    Decentralisation; Wage bargaining; Wage dispersion; Wage differentials;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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