TY - RPRT AU - Maczulskij, Terhi AU - Haapanen, Mika AU - Kauhanen, Antti AU - Riukula, Krista TI - Dark Half: Decentralized Bargaining and Well-Being at Work PY - 2021/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 14654 UR - https://www.iza.org/publications/dp14654 AB - 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. KW - decentralization KW - collective agreements KW - mental health disorder KW - sickness absence KW - job separation KW - blue-collar KW - white-collar ER -