Negotiated wage increases and the labor market outcomes of low-wage workers: Evidence from the Swedish public sector

Arbeitspapier

This paper investigates the impact of a collective agreement stipulating a one shot increase in establishment-specific wage levels in a public-sector setting where wages otherwise are set according to individualized wage bargaining. The agreement stipulated that wages should increase in proportion to the number of low-paid females within each establishment. We find that actual wages among incubents responded to the share of females with a wage below the stipulated threshold, conditional on the separate effects of the share of low wage earners, and the share of females. We find clear evidence of path-dependence in wages, covered workers remained on higher wage levels 4 years after the agreement took effect. The increase in wages resulted in a reduced probability of exit among young workers with relatively good grades and a lower frequency of new hires at the establishment level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2014:10

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Wage Level and Structure; Wage Differentials ; Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining ; Labor Turnover; Vacancies; Layoffs
• Subject: collective bargaining ; wage growth ; turnover ; wage rigidity ; hours of work ; labor costs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eliasson, Tove ; Nordström Skans, Oskar
• Event: Veröffentlichung
• (who): Institute for Evaluation of Labour Market and Education Policy (IFAU)
• (where): Uppsala
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/106271
• Last update: 10.03.2025, 11:41 AM CET