ISBN: 3790815586
TITLE: Collective Bargaining and Wage Formation
AUTHOR: Piekkola, Snellmann
TOC:

Introduction and Summary 1
Hannu Piekkola and Kenneth Snellman
1 The Basic Issues 1
2 The Articles in this Volume 3
References 8
International Product Market Integration and Wage Bargaining 9
Torben M. Andersen
Abstract 9
1 Introduction 9
2 Trends in Integration 12
3 Intra-Industrial Trade and Wage Formation 16
3.1 The Elasticity Effect 17
3.2 Wage Spill-Over and Wage Norms 25
3.3 Pressure for Wage Differentiation 27
4 Risk and Insurance 29
5 Concluding Remarks 31
References 32
Comment on Torben M. Andersen's Paper 35
Pekka Ilmakunnas
References 37
Wage Formation under Low Inflation 39
Steinar Holden
Abstract 39
1 Introduction 39
2 The Effect of Downward Nominal Wage Rigidity (DNWR) 41
3 The Effect of Inflation on Staggered Nominal Wage Contracts 47
4 Incomplete Labour Contracts and Nominal Wage Growth 48
5 Multi-Level Bargaining and the Co-ordination of Wage Setting 49
6 Near-Rational Wage and Price Setters 50
7 Empirical Evidence 50
8 Will Society Adapt? 52
9 Concluding Remarks 54
References 54
Comment on Steinar Holden's Paper 59
Tapio Palokangas
The Finnish Bargaining System: Actors' Perceptions 61
Jukka Pekkarinen and Kari E.O. Alho
Abstract 61
1 Introduction 62
2 The Finnish Wage Bargaining System 63
3 Central Results of the Survey 65
3.1 Performance of the Present System 66
3.2 Views on Reform Needs in the Bargaining System 72
3.3 Views on Reform Towards Company-level Wage Formation 78
3.4 Taxes, Social Security and Incomes Policy 81
3.5 EMU Adjustment 82
4 Conclusions 82
References 83
Productivity, Incentives and Relative Wages 85
Kari E.O. Alho
Abstract 85
1 Introduction 86
2 Productivity and Wage Distribution in Finland in Comparison to the US 88
3 A Model of Labour Market Regulation and Relative Wages 90
4 Incentives and Wage Formation 94
5 A Note on Incentives, Individual Effort and Wage Bargaining 98
6 Conclusion 100
References 101
Local Bargaining and Employers' Co-operation Options 103
Anni Heikkil and Hannu Piekkola
Abstract 103
1 Introduction 103
2 Data and Methods 104
2.1 Data 104
2.2 Methods 108
3 Employers' Desire for Local Bargaining 108
3.1 Descriptive Analysis 109
3.2 Econometric Analysis 110
3.3 Decision on the Locally Bargained Wage Share 115
4 Concluding Remarks 117
References 118
Appendix 118
Do Centralized Bargains Lead to Wage Moderation? Time-Series Evidence from Finland 121
Roope Uusitalo
Abstract 121
1 Motivation 121
2 Empirical Results 124
3 Discussion 131
References 132
Finnish Wage Bargaining - Actual Behaviour and Preferences 133
Kenneth Snellman
Abstract 133
1 Introduction 133
2 The Choice of Bargaining Level 134
3 Actual Behaviour in Past Decades 137
4 Opinions on Bargaining and Their Relation to Earlier Behaviour 143
5 Conclusion 149
References 150
Is the Labour Share Too Low in Finland? 153
Pekka Sauramo
Abstract 153
1 Introduction 153
2 Equilibrium Labour Income Share (ELIS) 155
3 ELIS in Finland: The Importance of Relative Prices 157
4 ELIS in Finland: The Importance of Labour-Saving Technical Change 159
5 ELIS and Imperfect Competition in the Product Market 160
6 ELIS and NAIRU 162
7 What was the Situation in 2001? 164
8 Future Prospects 167
References 168
Bargaining on Pensions: The Finnish Pension Reform of 2001-2002 169
Jukka Lassila
Abstract 169
1 Introduction 169
2 The Finnish Pension System and the Role of the Social Partners 170
2.1 A Brief History 170
2.2 Earnings-Related Pension System Before and After the 2001-2002 Reform 172
2.3 Why Do Social Partners Have Pension Power? 173
3 Effects of the 2001-2002 Pension Reform 173
3.1 General Assessment of the Reform 173
3.2 Winners and Losers 176
3.3 How Does the Pension Reform Affect Future Wage Bargaining? 180
4 Concluding Remarks 181
References 181
Appendix: FOG Model 182
END
