Decentralized wage bargaining in Sweden affects wage levels, wage structure, and firm performance. The study used data from 2007 and 2010 to analyze the impact of different bargaining systems. Results show that decentralized and two-tiered bargaining lead to higher wages for low-wage earners and increased firm productivity. There is no evidence of higher returns to education in these systems, but they do offer higher returns to experience compared to centralized bargaining. Overall, the level of decentralization in wage bargaining influences both wages and firm performance positively.