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Rent-sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data

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  • Nicole Guertzgen
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    Abstract

    Using a linked employer-employee dataset, this paper analyses the relationship between firm profitability and wages. Particular emphasis is given to the question of whether the sensitivity of wages to firm-specific rents varies with collective bargaining coverage. To address this issue, we distinguish sector- and firm-specific wage agreements and wage determination without any bargaining coverage. Our findings indicate that individual wages are positively related to firm-specific quasi-rents in the non-union sector and under firm-specific contracts. Industry-wide wage contracts, however, are associated with a significantly lower responsiveness of wages to firm-level profitability. Copyright � The editors of the "Scandinavian Journal of Economics" 2009. .

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

    Volume (Year): 111 (2009)
    Issue (Month): 2 (06)
    Pages: 323-349

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    Handle: RePEc:bla:scandj:v:111:y:2009:i:2:p:323-349

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    Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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    Web: http://www.blackwellpublishing.com/subs.asp?ref=0347-0520

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    Cited by:
    1. Baumgarten, Daniel, 2013. "Exporters and the rise in wage inequality: Evidence from German linked employer–employee data," Journal of International Economics, Elsevier, vol. 90(1), pages 201-217.
    2. Gautier, Erwan & Fougère, Denis & Avouyi-Dovi, Sanvi, 2013. "Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data," Economics Papers from University Paris Dauphine 123456789/11158, Paris Dauphine University.
    3. Paulo Guimarães & Sónia Torres & Pedro Portugal & John T. Addison, 2010. "The Sources of Wage Variation: An Analysis Using Matched Employer-Employee Data," Working Papers w201025, Banco de Portugal, Economics and Research Department.
    4. Monteiro, Natália Pimenta & Portela, Miguel & Straume, Odd Rune, 2010. "Firm Ownership and Rent Sharing," IZA Discussion Papers 4909, Institute for the Study of Labor (IZA).
    5. Sónia Torres & Pedro Portugal & John T. Addison & Paulo Guimarães, 2013. "The sources of wage variation: a three-way high-dimensional fixed effects regression model," Working Papers w201309, Banco de Portugal, Economics and Research Department.
    6. Guertzgen, Nicole, 2012. "Estimating the wage premium of collective wage contracts: Evidence from longitudinal linked employer-employee data," ZEW Discussion Papers 12-073, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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