The authors’ affiliations are, respectively, The Economic and Social Research Institute, Whitaker Square, Sir John Rogerson’s Quay, Dublin 2, Ireland. E-mail: firstname.lastname@example.org. We are grateful to the Central Statistics Office (CSO) for access to the data used in this study.
The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland
Article first published online: 2 SEP 2010
© 2010 Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 49, Issue 4, pages 593–615, October 2010
How to Cite
McGUINNESS, S., KELLY, E. and O’CONNELL, P. J. (2010), The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland. Industrial Relations: A Journal of Economy and Society, 49: 593–615. doi: 10.1111/j.1468-232X.2010.00618.x
- Issue published online: 2 SEP 2010
- Article first published online: 2 SEP 2010
This paper uses a linked employer-employee dataset to analyze the impact of institutional wage bargaining regimes on average labor costs and within-firm wage dispersion in private sector companies in Ireland. The results show that while centralized bargaining reduced labor costs within both the indigenous and foreign-owned sectors, the relative advantage was greater among foreign-owned firms. The analysis suggests that there are potentially large competitiveness gains to multinational companies that locate in countries implementing a centralized bargaining system. Furthermore, the results provide additional support to the view that collective bargaining reduces within-firm wage inequality.