Starting from the theoretical argument underlying the “hump shape” hypothesis, the paper investigates the various dimensions of centralisation in the wage formation process. The diversity of effects discussed in the paper makes it harder to arrive at unambiguous policy conclusions. Careful...

Public finances in the Nordics are facing great future challenges due to demographic developments. Increasing longevity is changing the age structure of the population, significantly raising the share of older people and thus the old-age dependency ratio. Over the last two decades, there has...