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Abstract

This article analyzes the effect of firm-level contracting on the wage structure in the Greek private sector. Using a matched employer–employee dataset for 2006, unconditional quantile regressions and relevant decomposition methods, we identify a wage premium associated with firm-level contracting, which follows a hump-shaped profile across the wage distribution. Further, the wage differential between workers under firm-level and broader-level collective agreements can be primarily attributed to the differences in the regime-specific wage setting structure, for those below the median of the unconditional wage distribution, and to differences in worker and firm-specific characteristics for those in the upper tail.