Regional Wage Differentiation and Wage Bargaining Systems in the EU

19 Pages Posted: 29 Feb 2008

See all articles by Athanasios Vamvakidis

Athanasios Vamvakidis

International Monetary Fund (IMF) - European Department

Date Written: February 2008

Abstract

The theoretical literature has argued that a centralized wage bargaining system may result in low regional wage differentiation and high regional unemployment differentials. The empirical literature has found that centralized wage bargaining leads to lower wage inequality for different skills, industries and population groups, but has not investigated its impact on regional wage differentiation. Empirical evidence in this paper for EU regions for the period 1980-2000 suggests that countries with more coordinated wage bargaining systems have lower regional wage differentials, after controlling for regional productivity and unemployment differentials.

Keywords: Wage bargaining, European Union, Unemployment, Productivity

Suggested Citation

Vamvakidis, Athanasios, Regional Wage Differentiation and Wage Bargaining Systems in the EU (February 2008). Available at SSRN: https://ssrn.com/abstract=1096867 or http://dx.doi.org/10.2139/ssrn.1096867

Athanasios Vamvakidis (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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