The role of collective bargaining systems for good labour market performance

This chapter assesses the role of collective bargaining for labour market performance in OECD countries. It builds on the detailed characterisation of collective bargaining systems and practices presented in the OECD Employment Outlook 2017. Using a rich mix of country‑, sector‑, firm‑ and worker‑level data, this chapter investigates the link of different collective bargaining settings with employment, wages, working conditions, wage inequality and productivity. It then discusses how broad‑based employee and employer organisations, administrative extensions, organised forms of decentralisation and wage co‑ordination may contribute to better balance inclusiveness and flexibility in the labour market.