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Institutional features of wage bargaining in 23 European countries, the US and Japan

By Philip Du Caju, Erwan Gautier, Daphn\ue9 Momferatou and M\ue9lanie Ward-Warmedinger

Abstract

This paper presents information on wage-bargaining institutions, collected for 23 European countries, plus the US and Japan using a standardised questionnaire. Our data provide information from the years 1995 and 2006, for four sectors of activity and the aggregate economy. The main findings include a high degree of regulation in wage-setting in most countries. Although union membership is limited in many of them, union coverage is high and almost all countries also have some form of national minimum wage. Most countries negotiate wages on several levels, the sectoral level still being the most dominant, with an increasingly important role for bargaining at the individual firm level. The average length of collective bargaining agreements is found to lie between one and three years. Most agreements are strongly driven by developments in prices and eleven of the countries surveyed have some form of indexation mechanism which affects wages. Cluster analysis identifies three country groupings of wage-setting institution

Topics: J31, J38, J51, J58, ddc:330, wage bargaining, institutions, indexation, coverage, trade union membership, contract length, Tarifverhandlungen, Institutionelle Infrastruktur, Lohnindexierung, Tarifvertrag, Dauer, Gewerkschaftsmitgliedschaft, EU-Staaten, Japan, USA
Publisher: Brussels: National Bank of Belgium
Year: 2008
OAI identifier: oai:econstor.eu:10419/144366
Provided by: EconStor

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