The aim of this paper is to describe divergences in employers’ and employees’ opinions on the proper share of local bargaining in contract wage gains, and explain when these divergences are particularly large or small. The paper shows that employers want the locally bargained wage share to...

We use a rich personnel data set from a Russian firm for the years 1997 to 2002 to analyze how the financial crisis in 1998 and the resulting change in external labour market conditions affect the wages and the welfare of workers inside a firm. We provide evidence that large shocks to external...