Centralized versus decentralized wage bargaining: The Swedish experience
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Authors
Ljung, Henrik S.
Issue Date
2004
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
In this study we examine the role of unions in collective centralized and
decentralized wage bargaining systems. Using Sweden as our example, we examine the
macroeconomic implications of each level of bargaining and attempt to determine the
most advantageous wage-setting scheme in promoting economic growth and low
unemployment. Wage drift and structural changes are some of the factors that have
caused a general shift from centralized to decentralized bargaining in Sweden. The study
also weighs the benefits and repercussions of collective bargaining on individual states
after the introduction of the EMU and the ECB. No definite conclusion was reached on
whether fully centralized or decentralized wage bargaining is more conducive to
economic expansion, but high unemployment and inflationary pressures are forcing
countries to make a decision.
Description
38 p.
Citation
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.