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

Institutions

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
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Firm-level bargaining and within-firm wage inequality: Evidence across Europe

Valeria Cirillo, Federico Tamagni, Matteo Sostero
International Labour Review
Employment and Welfare Studies
article

Firm-level bargaining and within-firm wage inequality: Evidence across Europe

Valeria Cirillo, Federico Tamagni, Matteo Sostero
article en

Abstract

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.

International Labour ReviewVol. 164(2)
Scuola Superiore Sant'Anna (IT), European Foundation for the Improvement of Living and Working Conditions (IE), University of Bari Aldo Moro (IT)
Decent work and economic growth
Openalex Percentile: Top 76%
Employment and Welfare Studies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Firm-level bargaining and within-firm wage inequality: Evidence across Europe — Valeria Cirillo, Federico Tamagni, et al. · International Labour Review (2025) | TGRS Research Map | TGRS