01851cas a2200241 a 4500 AALejournalIMF008285 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856354 1018-5941 BD-DhAAL BD-DhAAL McHugh, James. Wage Centralization, Union Bargaining, and Macroeconomic Performance / James McHugh. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper addresses two questions. First, under what circumstances will a centralized wage-bargaining system offer higher output and employment than a decentralized system? Second, what is the relationship between the degree of wage centralization and inflation? The paper argues that centralized wage setting may offer worse outcomes, despite the existence of a negative coordination externality in decentralized wage setting. This is more likely to occur when the legal and institutional environment strengthens the bargaining position of the union in the centralized regime compared with unions operating in a more decentralized regime. Furthermore, as product markets become more competitive, the macroeconomic outcomes in both regimes converge, and the degree of wage centralization becomes irrelevant. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2002/143 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/143/001.2002.issue-143-en.xml IMF e-Library