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Variable pay and/or collective wage bargaining? complements or substitutes?

Bechter, B. and Braakmann, N. and Brandl, B. (2021) 'Variable pay and/or collective wage bargaining? complements or substitutes?', ILR review., 74 (2). pp. 443-469.


Whether collective wage bargaining impedes the implementation of variable pay systems is uncertain. The authors argue that much of this uncertainty is attributable to the fact that research neglects differences in the institutional structure of bargaining. Using representative company-level data for all member states of the European Union, the authors investigate the incidence of variable pay systems in general as well as pay types that include payment-by-results, performance-related pay, and team-related pay under various bargaining arrangements. Findings show that the institutional structure of collective bargaining matters: Variable pay systems thrive under company and multilevel collective bargaining, whereas their implementation is limited under national-level collective wage bargaining.

Item Type:Article
Full text:(AM) Accepted Manuscript
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Date accepted:11 January 2019
Date deposited:12 March 2019
Date of first online publication:29 October 2019
Date first made open access:12 March 2019

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