Wage settlements and wage setting: results from a multi-level model

Gesine Stephan · Knut Gerlach

68 citations0/0 files storedApplied Economics

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Labor market dynamics and wage inequality Labor Movements and Unions Employment, Labor, and Gender Studies

Abstract

Which dimensions of wage setting differ across establishments applying collective contracts and uncovered establishments? The empirical analysis reported here utilizes German linked employer–employee data for the years 1990, 1995 and 2001 and is restricted to workers without supervisory functions in larger manufacturing firms. Results show that the expected wage of an average worker is higher in firms applying collective contracts, while returns to human capital and the gender wage gap are reduced. Moreover, during the 1990s these effects became stronger.

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References

1992Unemployment: macroeconomic performance and the labour market 1999High Wage Workers and High Wage Firms 1984What do unions do 1988Bargaining Structure, Corporatism and Macroeconomic Performance 1988Handbook of labor economics 1981Agency, Earnings Profiles, Productivity, and Hours Restrictions 2004Unemployment in the OECD Since the 1960s. What Do We Know?1996The Effect of Unions on the Structure of Wages: A Longitudinal Analysis

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2010Rising Wage Inequality, the Decline of Collective Bargaining, and the Gender Wage Gap 2011Paying More than Necessary? The Wage Cushion in Germany 2015Declining Unions and the Coverage Wage Gap: Can German Unions Still Cut It?2009The Performance Effects of Unions, Codetermination, and Employee Involvement: Comparing the United States and Germany (with an Addendum on the United Kingdom)2007Typisierung der Tarifvertragslandschaft / Identifying Types of Flexible Bargaining Agreements Using Cluster Analysis

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