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AIEL 2026


41st Conference of the Italian Association of Labour Economics

Department of Law
Roma Tre University 

Rome, 17-19 September 2026 

Beyond Union Membership: Wage Formation and Collective Institutions


Presenter

Fredrik Kostøl (Norwegian University of Science and Technology)


Coauthors

Elin Svarstad


Abstract

This paper examines how different forms of collective presence shape wage formation in a coordinated labour market. Using linked employer–employee data from Norway (2016–2023), we analyse how wages relate to firm-level productivity under varying configurations of collective bargaining coverage, workplace union density, and individual union membership. We document a positive but modest wage–productivity relationship once worker and firm fixed effects are included. Collective bargaining coverage is associated with weaker productivity responsiveness, particularly for white-collar workers, while union density and membership primarily affect wage levels. The findings highlight that collective presence is multidimensional, with distinct implications for wage formation.