Firm-Level Collective Bargaining and Wages in Greece: A Quantile Decomposition Analysis

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. © 2012 Blackwell Publishing Ltd/London School of Economics.