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The distribution of pay differs significantly across countries and over time among advanced industrial societies. In this paper, institutional and political determinants of pay inequality are studied in sixteen countries from 1980 to 1992. The most important factor in explaining pay dispersion is the level of wage-setting, i.e., whether wages are set at the level of the individual, the plant, the industry, or the entire private sector. The impact of centralization is the same whether centralization occurs via collective bargaining or via government involvement in private-sector wage-setting. The concentration of unions and the share of the labor force covered by collective bargaining agreements also matter. After controlling for wage-setting institutions, other variables such as the governing coalition, the size of government, international openness, and the supply of highly educated workers have little impact. Economic, political, and norm-based explanations for the association of centralization with egalitarian outcomes are discussed.
The American Journal of Political Science (AJPS), published four times each year, is one of the most widely-read political science journals in the United States. AJPS is a general journal of political science open to all members of the profession and to all areas of the discipline of political science. JSTOR provides a digital archive of the print version of American Journal of Political Science. The electronic version of American Journal of Political Science is available at http://www.blackwell-synergy.com/servlet/useragent?func=showIssues&code;=ajps. Authorized users may be able to access the full text articles at this site.
The Midwest Political Science Association, founded in 1939, is a national organization of more than 2,800 political science professors, researchers, students, and public administrators from throughout the United States and over 50 foreign countries. The association is dedicated to the advancement of scholarly communication in all areas of political science. Each year the association sponsors a three-day conference of political scientists in Chicago for the purpose of presenting and discussing the latest research in political science. More than 2,000 individuals participate in this conference, which features 300 panels and programs on politics. The MPSA is headquartered at Indiana University. For further information, contact William D. Morgan, Executive Director, email: wdmorgan@indiana.edu.
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American Journal of Political Science
© 1999 Midwest Political Science Association