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Centralisation, Employment and Wage Dispersion
Abstract
This paper is about bargaining institutions and their influence on wage dispersion and employment. Using novel statistical measures, it compares labor-market performance in seventeen OECD countries since 1973. It concludes that countries with highly centralized wage bargaining have generally achieved the best performance, combining high employment with low wage dispersion, thereby avoiding certain major inequalities prevalent elsewhere. The paper also presents a formal model of bargaining based on the work of L. Calmfors and J. Driffill (1988). Simulations are used to illustrate how this model generates the kind of outcomes described in the empirical part of the paper. Copyright 1992 by Royal Economic Society.
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Citations
Cited by
Social Foundations of Postindustrial Economies
Esping-Andersen, G. (1999) · doi:10.1093/0198742002.001.0001 · Cited by 6,253
Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey
(1993) · OECD Economics Department Working Papers · doi:10.1787/521405217277 · Cited by 428
Macroeconomic Performance and Collective Bargaining: An International Perspective
Flanagan, R. J. (1999) · Journal of Economic Literature · doi:10.1257/jel.37.3.1150 · Cited by 419
Wage Dispersion and Decentralization of Wage Bargaining
Dahl, C. M., le Maire, D., & Munch, J. R. (2013) · Journal of Labor Economics · doi:10.1086/669339 · Cited by 126
Metadata
- Authors
- Rowthorn, R. E.
- Venue
- The Economic Journal
- Publisher
- Oxford University Press (OUP)
- Published
- 1992-05
- Volume
- 102
- Issue
- 412
- Pages
- 506
- ISSN
- 0013-0133 (ISSN-L)
- OpenAlex
- W1963816925
- Cited by
- 163
- References
- 0
- FWCI
- 25.57
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Centralisation, Employment and Wage Dispersion. https://app.cochat.ai/papers/10.2307/2234288
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- Rowthorn, R. E. (1992). Centralisation, Employment and Wage Dispersion. The Economic Journal. https://doi.org/10.2307/2234288
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
