Description:
<jats:p> A large and increasing number of studies examine the influence of collective bargaining systems on wage dispersion, but very few analyse their influence on poverty levels. Yet it would be a mistake to assume that the relationship between wage dispersion and poverty rates is straightforward: the evidence shows that in most industrialized countries, poverty is not primarily a problem of the working poor. This article addresses explicitly the relationship between collective bargaining systems and relative poverty rates in OECD countries. Empirical findings suggest that industrial relations systems have a significant impact upon poverty, not through any direct effect on wage dispersion, but from their relative impact on government spending on social security. </jats:p>