Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer–Employee Data
AbstractIn many European countries, the majority of workers have their wage rates determined directly by industry-level agreements. For some workers, industry agreements are supplemented by firm-specific agreements. Yet, the relative importance of individual company and industry agreements (in other words, the degree of centralisation) differs drastically across industries. The authors of this paper use unique linked employer-employee data from a 2003 survey in Belgium to examine how these bargaining features affect the extent of rent-sharing. Their results show that there is substantially more rent-sharing in decentralised than in centralised industries, even when controlling for the endogeneity of profits, for heterogeneity among workers and firms and for differences in characteristics between bargaining regimes. Moreover, in centralised industries, rent-sharing is found only for workers that are covered by a company agreement. The findings of this paper finally suggest that, within decentralised industries, both firm-specific and industry-wide bargaining generate rent-sharing to the same extent.
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Bibliographic InfoArticle provided by London School of Economics in its journal British Journal of Industrial Relations.
Volume (Year): 51 (2013)
Issue (Month): 1 (03)
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Other versions of this item:
- Rusinek, Michael & Rycx, Francois, 2008. "Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 3406, Institute for the Study of Labor (IZA).
- Michael Rusinek & François Rycx, 2013. "Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data," ULB Institutional Repository 2013/167744, ULB -- Universite Libre de Bruxelles.
- Michael Rusinek & François Rycx, 2009. "Rent-sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data," Working Papers CEB 09-004.RS, ULB -- Universite Libre de Bruxelles.
- Michael Rusinek & François Rycx, 2008. "Rent-sharing under different bargaining regimes: evidence from linked employer-employee data," DULBEA Working Papers 08-09.RS, ULB -- Universite Libre de Bruxelles.
- Michael Rusinek & François Rycx, 2008. "Rent-sharing under different bargaining regimes : Evidence from linked employer-employee data," Working Paper Research 152, National Bank of Belgium.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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