In Belgium, questions on the wage-setting system also interfere with the "regionaiisation" debate. Among the suggested reforms, the regionaiisation of the collective bargaining system turns out frequently. It relies on the assumption that the productivity differences between regions are not...

Using Belgian linked employer-employee data, we examine how collective bargaining arrangements affect the relationship between firms' profitability and individual wages via rent-sharing. In industries where agreements are usually renegotiated at firm-level ('decentralized industries') wages and...