We are grateful to Cláudia Afonso and Rita Morais for insightful conversations. We also thank Alex Bryson, Steve Raphael, Enrico Moretti, Manudeep Bhuller, Attila Lindner, and René Böheim, as well as participants in the IR Berkeley Collective Bargaining Special Issue Conference, the 2025 Helsinki Workshop on Wages, Employment and Inequality, the 2026 Workshop on Labor Markets, Institutions, and Inequality at the University of Girona, the Workshop in Honor of Rudolf Winter-Ebmer at the JKU Linz University, and the seminar at Minho University. We acknowledge financial support from the Spanish Ministry of Science and Innovation grant PID2024-162349NB-I00, and the Portuguese FCT grants doi.org/10.54499/2022.01269.PTDC and doi.org/10.54499/2023.08911.CEECIND/CP2880/CT0001. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.