Regional Wage Differentiation and Wage Bargaining Systems in the EU

Author/Editor:

Athanasios Vamvakidis

Publication Date:

February 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2008/043

Subject:

Productivity Unemployment Unemployment rate Wage bargaining Wages

English

Publication Date:

February 1, 2008

ISBN/ISSN:

9781451869057/1018-5941

Stock No:

WPIEA2008043

Pages:

17

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