Heterogeneous Impacts of the Decentralization of Collective Bargaining

Routine-Biased technical change: Individual-Level evidence from a plant closure

“…Complementary to the findings from our case-study, the authors report that an increased propensity of non-employment for individuals with routine task competencies is an important contributing factor. This finding is corroborated by Fossen and Sorgner (2020) on the basis of individual-level panel analysis in the 2 Similarly, Kauhanen and Riukula (2019) measure the heterogeneity in employment and earnings losses from mass lay-off's that occurred in Finland between 2001 and 2016. They find that workers that were initially employed in jobs with high routine task content experienced larger declines in employment and wages.…”

The effects of the decentralization of collective bargaining on wages and wage dispersion: Evidence from the Finnish forest and IT industries

“…These are wage increases negotiated and implemented locally according to the rules set in sectoral collective agreements. Their prevalence has varied over time and across industries (see Kauhanen et al., 2020 for more details and analysis). Employers have wished for more decentralized bargaining since at least the beginning of the millennium (Heikkilä & Piekkola, 2005; Pekkarinen & Alho, 2005).…”