The Role of Collective Agreements in Shaping Wages and Wage Structures

This project examines how collective agreements affect wages and wage structures in the private sector. We explore, among other things, whether collective agreements matter most for those with the lowest wages, and whether agreement coverage is associated with the use of bonuses and pay supplements.

What happens to wage levels and wage inequality when a firm signs a collective agreement? This project examines how collective agreements affect individual wages in the private sector, including base pay, bonuses, and pay supplements.

While several studies have explored the relationship between union density and wage levels, far less research has specifically investigated the impact of collective agreements on wage outcomes. We aim to fill this knowledge gap by analyzing how the introduction of a collective agreement affects both wage levels and wage structures, and whether the effect varies across the wage distribution.

To get closer to identifying causal effects – rather than mere correlations – we conduct so-called event studies and apply matching methods to compare wage developments in firms with and without collective agreements.

The project relies entirely on detailed administrative data from Statistics Norway (SSB).