Using linked employer-employee data from the German Structure of Earnings Survey 2001,this paper provides a comprehensive picture of the wage structure in three wage-settingregimes prevalent in the German system of industrial relations. We analyze wagedistributions for various labor market subgroups by means of kernel density estimation,variance decompositions, and individual and firm-level wage regressions. Unions' impactthrough collective and firm-level bargaining mainly works towards a higher wage level andreduced overall and residual wage dispersion. Yet observed effects are considerablyheterogeneous across different labor market groups. There is no clear evidence for wagefloors formed by collectively bargained low wage brackets which would operate as minimumwages for different groups of workers.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0813.
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