Pay in Europe in different wage-bargaining regimes

Stefan Speckesser, Vahé Nafilyan, Stefanie Ledermaier

Research output: Book/ReportCommissioned reportpeer-review

Abstract

As in all market economies, wage bargaining in the European Union Member States is fundamental to enabling labour as a factor of production to obtain its fair share of the production output (and thereby participate in prosperity) and to securing a high level of employment in the economy (thereby supporting aggregate demand and contributing to social inclusion). In the EU, around two-thirds of workers are covered by some form of collective agreement, which demonstrates the importance of wage bargaining to macroeconomic outcomes in the European social model.

This report provides a quantitative analysis of how the features of national wage-bargaining regimes affect pay outcomes. The analysis builds on the theoretical propositions that both highly centralised and highly decentralised regimes align wages and productivity, ensuring a high level of employment, and that a high degree of coordination of wage bargaining can moderate wage increases, leading to macroeconomic stability.
Original languageEnglish
PublisherEuropean Foundation for the Improvement of Living and Working Conditions (Eurofound)
Number of pages108
ISBN (Electronic) 9789289713917
Publication statusPublished - 2015

Publication series

NameResearch Report
PublisherEuropean Foundation for the Improvement of Living and Working Conditions (Eurofound)

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