Abstract
The decentralization of wage-setting – from multi-employer bargaining to firm-levelagreements – allows firms to adjust their internal wage structure but has uncertain effects oninequality. This article estimates the difference in within-firm wage inequality between centralizedand firm-level bargaining. Exploiting employer–employee earnings data over 2006–18 for Belgium,Czechia, France, Germany, Spain and the United Kingdom, we compare various bargainingtraditions over a period of economic change. The findings defy simple classifications of nationalbargaining systems: the difference in inequality between firm-level and centralized bargainingvaries considerably across and within countries and there is no common time trend.