Abstract

In Belgium, questions on the wage-setting system also interfere with the “regionalisation” debate. Among the suggested reforms, the regionalisation of the collective bargaining system turns out frequently. It relies on the assumption that the productivity differences between regions are not fully taken into account in a unified wage setting system. Our findings challenge this hypothesis by putting forward the current existence of wage differentials between regions, industries and joint committees. We also show that wages depend upon profits in all regions. We therefore conclude that the profitability variations are already integrated in the wage formation process. Hence, we are not so sure that a regionalisation of the wage-setting system will result differently.JEL Codes: J31, J52, R11, H77.

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