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Wages and the bargaining regime in a corporatist setting: the Netherlands

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  • Hartog, Joop
  • Leuven, Edwin
  • Teulings, Coen

Abstract

In a corporatist country like the Netherlands, wages should not be distinguished by union membership status, but by bargaining regime. Acknowledging only the firms’ bargaining regime, we find small differences between four regimes and certainly no distinction between ‘covered’ and ‘uncovered’ firms. Distinguishing – within covered firms – between workers covered and uncovered by collective bargaining, including a model with partially unobserved sector selection, we find somewhat larger bargaining regime effects, and sometimes substantial coverage effects. Estimation of the latter, is seriously troubled by unobserved heterogeneity, however.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 18 (2002)
Issue (Month): 2 (June)
Pages: 317-331

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Handle: RePEc:eee:poleco:v:18:y:2002:i:2:p:317-331

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Web page: http://www.elsevier.com/locate/inca/505544

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  1. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc.
  2. Christie, Virginia, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 43-56, March.
  3. William T. Dickens & Kevin Lang, 1985. "A Test of Dual Labor Market Theory," NBER Working Papers 1314, National Bureau of Economic Research, Inc.
  4. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
  5. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-67, June.
  6. Stewart, Mark B, 1987. "Collective Bargaining Arrangements, Closed Shops and Relative Pay," Economic Journal, Royal Economic Society, vol. 97(385), pages 140-56, March.
  7. Francine D. Blau & Lawrence M. Kahn, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  8. Robinson, Chris & Tomes, Nigel, 1984. "Union Wage Differentials in the Public and Private Sectors: A Simultaneous Equations Specification," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 106-27, January.
  9. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1.
  10. van den Berg, Annette & Groot, Wim, 1992. "Union Membership in the Netherlands: A Cross-Sectional Analysis," Empirical Economics, Springer, vol. 17(4), pages 537-64.
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