A1 Journal article (refereed)
The incidence and effects of decentralized wage bargaining in Finland (2024)
Kauhanen, A., Maczulskij, T., & Riukula, K. (2024). The incidence and effects of decentralized wage bargaining in Finland. Journal of Labor Research, Early online. https://doi.org/10.1007/s12122-024-09356-x
JYU authors or editors
Publication details
All authors or editors: Kauhanen, Antti; Maczulskij, Terhi; Riukula, Krista
Journal or series: Journal of Labor Research
ISSN: 0195-3613
eISSN: 1936-4768
Publication year: 2024
Publication date: 05/04/2024
Volume: Early online
Publisher: Springer
Publication country: United States
Publication language: English
DOI: https://doi.org/10.1007/s12122-024-09356-x
Publication open access: Openly available
Publication channel open access: Partially open access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/94384
Abstract
There was a strong push from employers to decentralize wage setting in Finland in the early 2000s. We analyze the incidence of decentralization and its effect on the level and dispersion of wages by using nationally representative panel data. The results show that wage setting was more likely decentralized in collective agreements where a high share of employees worked in manufacturing or real estate industries than in other industries, such as in education and human health and social work activities. Decentralization was, for the most part, quite short-lived. Using recent difference-in-differences methods that allow for heterogeneous treatment effects and differences in the timing of treatment, we show that decentralization had modest positive effects on the level and dispersion of wages in manufacturing.
Keywords: wages; decentralisation; pay systems; wage formation; pay policy
Free keywords: collective bargaining; decentralization; wage dispersion; difference-in-differences
Contributing organizations
Ministry reporting: Yes
Reporting Year: 2024
Preliminary JUFO rating: 1