Wage bargaining and pay outcomes in Europe
In the European Union, around two-thirds of workers are covered by some form of collective agreement, pointing towards the importance of wage bargaining for macroeconomic outcomes in the 'European Social Model'. IES undertook research for the European Foundation for the Improvement of Living and Working Conditions to better understand the effects of the different characteristics of (national) wage bargaining regimes on pay outcomes. Our study delivers new empirical evidence on the impact of bargaining institutions on macroeconomic outcomes, incorporating key features of national wage negotiation systems such as centralisation and coordination.