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Bargaining Regimes and Wage Dispersion

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  • Knut Gerlach

    ()
    (Leibniz Universitaet Hannover)

  • Gesine Stephan

    ()
    (Bundesagentur für Arbeit, Nuernberg)

Abstract

Collective wage contracts impose restrictions on wage-setting. We utilize German linked employer-employee data for blue-collar worker to compute the dispersion of wages and wage components within and across firms under three different wage-setting regimes: Establishments applying industry-wide collective contracts, establishments with firm-level contracts and uncovered establishments. The empirical analysis confirms a lower dispersion of wages and in particular "worker quality indices" for firms applying sectoral collective contracts compared to companies in the other two wage-setting regimes. Between the years 1990, 1995 and 2001 the dispersion of wages increases, and this is valid too for firms covered by industry-wide collective contracts. A sensitivity analysis demonstrates that the results retain their statistical significance and do not change qulitatively if we modify the minimum firm size (establishments with at least 50, 100 and 250 employees) or taken into account the endogeneity of tenure or self-selection of workers into bargaining regimes.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 226 (2006)
Issue (Month): 6 (November)
Pages: 629-645

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Handle: RePEc:jns:jbstat:v:226:y:2006:i:6:p:629-645

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Keywords: Wage compression; collective contracts; establishment effects on wages;

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References

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Citations

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Cited by:
  1. Gärtner, Debora & Grimm, Veronika & Lang, Julia & Stephan, Gesine & Daumann, Volker (Mitarb.) & Dony, Elke (Mitarb.) & Knapp, Barbara (Mitarb.) & Strien, Karsten (Mitarb.), 2014. "Kollektive Lohnverhandlungen und der Gender Wage Gap : Befunde aus einer qualitativen Studie," IAB Discussion Paper 201414, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Lutz Bellmann & Hans-Dieter Gerner & Olaf Hübler, 2014. "Effects of reciprocal concessions on employment and real capital," Economics Bulletin, AccessEcon, vol. 34(1), pages 494-509.
  3. Karsten Kohn & Alexander C. Lembcke, 2007. "Wage Distributions by Bargaining Regime: Linked Employer-Employee Data Evidence from Germany," CEP Discussion Papers dp0813, Centre for Economic Performance, LSE.
  4. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
  5. Bernd Fitzenberger & Karsten Kohn & Alexander Lembcke, 2008. "Union density and varieties of coverage: the anatomy of union wage effects in Germany," LSE Research Online Documents on Economics 19622, London School of Economics and Political Science, LSE Library.
  6. repec:iab:iabzaf:v:44:i:1/2:p:163-172 is not listed on IDEAS
  7. Teschner, Tatjana, 2009. "Der Einfluss des Lohnsetzungsregimes auf das geschlechtsspezifische Lohndifferenzial," Hannover Economic Papers (HEP) dp-432, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  8. Wolf Heinbach, 2007. "Wages in wage-setting regimes with opening clauses," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 1(3), pages 233-245, December.
  9. Patrick A. Puhani, 2008. "Relative Demand and Supply of Skills and Wage Rigidity in the United States, Britain, and Western Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 573-585, December.
  10. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
  11. Teschner, Tatjana, 2009. "Der Einfluss der Tarifbindung auf Lohnhöhe und Lohnverteilung," Hannover Economic Papers (HEP) dp-431, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

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