Firm-level bargaining and within-firm wage inequality: Evidence across Europe
The decentralization of wage-setting – from multi-employer bargaining to firm-level agreements – allows firms to adjust their internal wage structure but has uncertain effects on inequality. This article estimates the difference in within-firm wage inequality between centralized and firm-level bargaining. Exploiting employer–employee earnings data over 2006–18 for Belgium, Czechia, France, Germany, Spain and the United Kingdom, we compare various bargaining traditions over a period of economic change. The findings defy simple classifications of national bargaining systems: the difference in inequality between firm-level and centralized bargaining varies considerably across and within countries and there is no common time trend.
Authors
- Valeria Cirillo (ORCID: https://orcid.org/0000-0003-4562-2359)
- Federico Tamagni (ORCID: https://orcid.org/0000-0001-6476-6388)
- Matteo Sostero (ORCID: https://orcid.org/0000-0003-0341-6848)
Institutions
- Scuola Superiore Sant'Anna (IT)
- European Foundation for the Improvement of Living and Working Conditions (IE)
- University of Bari Aldo Moro (IT)
Publication Details
- Journal
- International Labour Review
- Published
- 2025-06-17
- DOI
- https://doi.org/10.16995/ilr.18843
- Primary Topic
- Employment and Welfare Studies
- Type
- article
- Field-Weighted Citation Impact
- 0.00