@TechReport{iza:izadps:dp14654, author={Maczulskij, Terhi and Haapanen, Mika and Kauhanen, Antti and Riukula, Krista}, title={Dark Half: Decentralized Bargaining and Well-Being at Work}, year={2021}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14654}, url={https://www.iza.org/publications/dp14654}, abstract={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.}, keywords={decentralization;collective agreements;mental health disorder;sickness absence;job separation;blue-collar;white-collar}, }