TY - RPRT AU - Kauhanen, Antti AU - Maczulskij, Terhi AU - Riukula, Krista TI - Heterogeneous Impacts of the Decentralization of Collective Bargaining PY - 2020/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13867 UR - https://www.iza.org/index.php/publications/dp13867 AB - This paper analyses the heterogeneous effects of the decentralization of collective bargaining on the incidence of wage increases and wage dispersion in Finland. We use linked employer-employee panel data for the 2005-2013 period, which includes major changes in bargaining systems and economic conditions. Our regression results from models with high-dimensional individual and firm fixed effects show that decentralized bargaining leads to very different outcomes for blue- and white-collar employees. Decentralized bargaining decreases wage dispersion among blue-collar employees and slightly increases it among white-collar employees. Decentralization also affects the incidence of wage increases differently for blue- and white-collar employees. We argue that these differences reflect the different preferences of the employee groups. We also show that the fallback option in local negotiations affects the decentralization outcomes. KW - wage dispersion KW - decentralization KW - collective agreements KW - wage bargaining KW - wage increase ER -