Unions, Employers' Associations, and Wage-Setting Institutions in Northern and Central Europe, 1950–1992

The eight countries examined in this study—Austria, Belgium, Denmark, Finland, Germany, the Netherlands, Norway, and Sweden—have long been viewed as exemplifying “corporatist” industrial relations systems, in which union coverage is high, unions are influential and commonly have strong ties to political parties, and collective bargaining is institutionalized and relatively centralized. Many observers have recently argued that such corporatist bargaining institutions are everywhere being undermined by changes in the global economy. The authors, using data from a wide variety of primary and secondary sources, test whether changes in patterns of wage-setting in the private sector are consistent with that claim. Although they find some signs that corporatist wage-setting institutions are in decline, they also find offsetting signs of the resiliency of such institutions. Overall, the evidence does not indicate that wage-setting in the private sector is undergoing a general process of decentralization in these eight countries.