Collective bargaining

This chapter provides an overview of cross-national variation in the structure and strength of collective bargaining institutions. Several dimensions are compared, including the actors involved, the level of bargaining, the degree of coordination, and the mechanisms for extending collective agreements. The chapter then discusses the implications of collective bargaining for organizational and macroeconomic performance as well as for workers’ outcomes, including wage levels, job security and control of work. Past research shows that these effects depend on country and sector-specific bargaining rights and structures. Despite cross-national variation, in many countries collective bargaining has partly lost its ability to reduce wage inequality as a result of declining labour power vis-à-vis management.