Firm‐Level Collective Bargaining and Wages in <scp>G</scp>reece: A Quantile Decomposition Analysis

Abstract

Abstract This article analyzes the effect of firm‐level contracting on the wage structure in the G reek 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.