In this paper I develop a two-stage bargaining model determining wages and employment and apply it to the public sector. Solving the model leads to structural wage and employment equations that I estimate using data from the public sector in Iceland. Nested in the model are the major collective...

This paper analyses how decentralised wage bargaining affects wage levels and the structure of wages as well as the impact on firm performance. By using unique employer-employee matched data for Sweden 2007 and 2010, the paper presents new evidence on the collective bargaining premium in Sweden...

Using a unique harmonized matched employer-employee dataset (European Structure of Earnings Survey, 1995), we study the impact of the regime of collective bargaining on wages in the manufacturing sector of three countries that are characterized by a multi-level system of bargaining: Belgium,...

In many European countries, the majority of workers have their wages directly defined by industry-level agreements. In addition, for some workers, industry agreements are complemented by firm-specific agreements. This paper provides a critical survey of the effects of this two-tier bargaining...