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The outcome of individual bargaining and the influence of managers' bargaining power: evidence from union data
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
2006 (English)Report (Other academic)
Abstract [en]

We analyze unique data that identify whether individuals have participated in decentralized wage setting and whether they have negotiated their own wages. Wages are significantly higher for those who have been part of a formalized wagesetting process compared with non-participants, but only in the public sector. Employees who negotiate their own wages have higher wages than nonnegotiators. Wages are also significantly higher for those who negotiate with a manager who has the power to set wages, compared with those who negotiate with a manager who has no power over wages. This concerns employees in the public and the private sectors. Quantile regression results reveal that the outcome of individual bargaining increases over the wage distribution. Percentile wage differences are significant only among workers who negotiate with a manager who has the power to set wages. Estimated wage differences between negotiators and non-negotiators are 4.6% on average, 5.6% in the 90th percentile, and 2.3% at the 10th percentile.

Place, publisher, year, edition, pages
2006. , 25 p.
Series
Swedish Institute for Social Research, ISSN 0283-8222 ; 3/2006
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-72496OAI: oai:DiVA.org:su-72496DiVA: diva2:499985
Available from: 2012-02-13 Created: 2012-02-13 Last updated: 2012-02-13Bibliographically approved

Open Access in DiVA

L. Granqvist, H. Regnér WP 3/2006(130 kB)125 downloads
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Type fulltextMimetype application/pdf

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf