Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Swedish Institute for Social Research, Stockholm University Working Paper Series, Swedish Institute for Social Research, Stockholm University

No 3/2006:
The outcome of individual wage bargaining and the influence of managers' bargaining power: evidence from union data

Lena Granqvist () and Håkan Regnér ()

Abstract: 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 wage-setting process compared with non-participants, but only in the public sector. Employees who negotiate their own wages have higher wages than non-negotiators. 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.

Keywords: wage bargaining; earnings equations; decentralized wage setting; quantile regression; (follow links to similar papers)

JEL-Codes: J31; J33; J41; J44; (follow links to similar papers)

24 pages, May 8, 2006

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

WP06no3.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Lena Lindahl ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:sofiwp:2006_003 This page was generated on 2012-03-12 00:03:05