By Hannu Piekkola, Kenneth Snellman
This quantity considers the improvement of the salary formation and salary bargaining associations as a reaction to alterations within the bargaining surroundings. those alterations contain a decrease point of inflation and the expansion in intraindustrial alternate as organizations became extra specialized. The reaction to those adjustments depends upon the present associations and at the features of the bargaining approach. in general there was a few circulate in the direction of decentralisation; the query is what might be bargained centrally and which concerns may be transferred to reduce degrees. many of the contributions pay specified cognizance to Nordic regimes utilizing survey effects collected from the Finnish labour industry companions.
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Additional resources for Collective Bargaining and Wage Formation: Performance and Challenges
2001): Product and Labour Market Interactions in the OECD, OECD Working Paper 312. OECD (1997): Economic Outlook. OECD (1999): Open Markets Matters. OECD (2001): Employment Outlook. Rodrik, D. (1997): Has Globalization Gone too Far? Institute for International Economic Studies, Washington. Santoni, M. (2002): Product Market Integration and Endogenous Market Structure, Unpublished Working Paper. Skaksen, M. R. (2001): Should trade unions appreciate foreign direct investment, Journal of International Economics, 55, 379-390.
The case of a negative relationship between decision variables is denoted strategic substitutability. Wage norms or formulas like this have a long history, and were, for example, a core element of the so-called Scandinavian inflation model. International Product Market Integration and Wage Bargaining 27 national wage bargaining at present is an unlikely response, the initiatives are a way of trying to minimize the possible externalities involved in wage setting. Empirical evidence on the strength of wage interdependencies is presented in Andersen et al.
The change in some countries away from very centralized towards more sectorial-based wage settlements, cf. section 1, can be interpreted as reflecting such changes. If it becomes more difficult to maintain very centralized or economy-wide negotiations and therefore risk-sharing arrangements, it is important to note that the alternative is not necessarily individualized solutions. In between, there are socalled occupational or negotiated insurance schemes at the sectorial level. While not attaining the same degree of risk sharing as more universal arrangements, they allow room for solidaristic solutions.