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Collective Agreements, Wages, and Firms' Cohorts: Evidence from Central Europe

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  • Iga Magda
  • David Marsden
  • Simone Moriconi

Abstract

Using a large, matched employer-employee data set, the authors investigate the impact of company and industry collective bargaining agreements on wages in the Czech Republic, Hungary, and Poland (CE3). They also examine the changing characteristics of the union wage premium in different cohorts of establishments. Their results challenge the common idea of weak unions in the CE3 by revealing a union wage premium whose characteristics depend on the level at which collective bargaining occurs. They find that industry agreements increase wages for low-skilled workers, while company agreements increase medium- and high-skilled wages. Their second finding is that the union wage premium is unevenly distributed between cohorts, with substantial cross-country variation. Wage premiums are concentrated in the transitional cohorts in the Czech Republic and Poland and, to a lesser extent, in the pre-transitional cohort in Hungary.

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 65 (2012)
Issue (Month): 3 (July)
Pages: 607-629

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Handle: RePEc:ilr:articl:v:65:y:2012:i:3:p:607-629

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Cited by:
  1. Sang-Wook (Stanley) Cho & Juliàn P. Dìaz, 2014. "Accounting for Skill Premium Patterns during the EU Accession: Productivity or Trade?," Discussion Papers, School of Economics, The University of New South Wales 2014-14, School of Economics, The University of New South Wales.

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