Wage setting as a discovery process. Why local is superior to central even if one is skeptical towards performance-based pay

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Acknowledgments

I thank Dan Klein and participants at the Ratio brownbag colloquium for comments.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. All quotes are translated from Swedish, and the full report of the research can be found in Karlson et al. (2014).

2. None of the differences brought up here has to do with what the firm produces and sells because the argument is aimed at HR practitioners who mostly focus their expertise towards union relations, organizational culture, and organizational structure.

Additional information

Funding

The paper was written while I was working as a researcher within the project on Wage setting at Ratio. I am thankful to the Ratio institute and my colleagues for support and suggestions while writing this piece.