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Decentralized Wage Formation in Sweden
Author(s) -
Granqvist Lena,
Regnér Håkan
Publication year - 2008
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2008.00688.x
Subject(s) - negotiation , wage , collective bargaining , wage bargaining , trade union , labour economics , decentralization , position (finance) , economics , political science , market economy , finance , law
Recent Swedish collective bargaining agreements have incorporated provisions for local pay review talks and opportunities for individuals to negotiate their own wages. Using trade union data, we show that members who participate in local pay review talks and members who negotiate their own wages have significantly higher monthly wages than those who do not. Pay decentralization either improves an individual's bargaining position or attracts more productive trade union members. Either way, trade union wage policies to increase individual‐level wage variance are achieving their intended effects.