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OECD Employment Outlook 2004 Edition: Wage‐setting Institutions and Outcomes

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The OECD Jobs Strategy recommends policies to increase wage flexibility, including moves to decentralise wage bargaining. However, this is one of the policy areas where member governments have shown the greatest reluctance to implement the reforms proposed and disagreements among researchers have been most pronounced. Have wage‐setting institutions become more supportive of high employment rates and broadly‐shared prosperity? To what extent is the trend towards lower union density and more decentralised collective bargaining a factor behind wage moderation and greater earnings inequality recorded in some OECD countries? Does insufficient wage differentiation limit the employment prospects of youths, women or less educated workers? ...

Document Type: Review Article

Publication date: July 1, 2004

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