Abstract
Empirical research usually generally supports the view that the countries with a more centralized bargaining system have more favourable outcomes than countries where bargaining occurs at the industry level. These studies are usually based on cross-country data. This paper examines the relationship between the degree of centralization and wage increases within a country across years with different degrees of centralization. The key finding is that both bargained and actual nominal wage increases are lower when bargaining takes place at a national level.
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