TY  - GEN
AB  - In this paper, we employ the agent-based macroeconomic Eurace@Unibi
model to study the economic implications of different degrees of de-centralization in the wage setting. Starting from a baseline scenario, corresponding
to a high degree of unionization, in which wages are fully centralized and
indexed on economy-wide productivity gains and inflation, we investigate
how an increasing level of de-centralization affects the dynamics of output,
employment, inequality, and market concentration. We think of decentralization as wages being a weighted average of an economy-wide `union wage'
and a firm-specific component depending on the firm's productivity and the
experienced tightness of the labor market. Our findings suggest that stronger
centralization of the wage setting process induces lower wage inequality and
stronger concentration on the consumption good market. Furthermore, due
to more physical investments, an economy with more centralized wage set-
ting is characterized by higher productivity and faster economic growth.
DA  - 2019
DO  - 10.4119/unibi/2935472
KW  - centralized wage bargaining
KW  - collective agreement
KW  - de-unionization
KW  - industry dynamics
KW  - inequality
KW  - growth
KW  - etace_WP
LA  - eng
PY  - 2019
SN  - 2196-2723
SP  - 30-
TI  - The Role of (De-)Centralized Wage Setting for Industry Dynamics and Economic Growth. An Agent-Based Analysis with the Eurace@Unibi Model
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29354723
Y2  - 2024-11-22T02:22:04
ER  -