Dark half: Decentralized bargaining and well-being at work

Arbeitspapier

Using information on collective agreements and administrative data on mental ill-health, sickness absence, and job separations, we study the effect of decentralization on well-being at work in Finland. Our regression results with individual-and firm-level fixed effects show that decentralized wage bargaining leads to distinct outcomes for different employee groups. For example, white-collar employees in white-collar intensive firms show increased well-being at work. In contrast, all employees in blue-collar intensive firms show quite strong and negative responses to decentralization. Decentralization affects mostly job-separation behavior and mental ill-health, whereas no consistent effects for sickness absence are observed. Whether the mechanisms between decentralization and worker's well-being is explained by pay dispersion, wage level, or different preferences toward wage policy needs to be explored further.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Working Papers ; No. 89

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Trade Unions: Objectives, Structure, and Effects ; Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
• Subject: Decentralization ; Collective agreements ; Mental health disorder ; Sickness absence ; Job separation ; Blue-collar ; White-collar

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Maczulskij, Terhi ; Haapanen, Mika ; Kauhanen, Antti ; Riukula, Krista
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/273016
• Last update: 10.03.2025, 11:42 AM CET