Is the Erosion Thesis Overblown? Evidence from the Orientation of Uncovered Employers
AbstractIt is sometimes claimed that the coverage of collective bargaining in Germany is considerably understated because of orientation, a process whereby uncovered firms profess to shadow the wages set under sectoral bargaining. Yet importantly, at a time when collective bargaining proper has been in retreat, little is known of corresponding trends in the frequency of indirect coverage, still less of the degree to which wages are aligned in practice. Using nationally representative data for 2000–2010, this paper charts the extent of orientation in the uncovered sector, and tracks average wages across bargaining regimes as well as changes in wages from switches in regime. It is reported that orientation is growing with the decline in sectoral bargaining and that orienting firms do pay higher wages than their counterparts in the collective bargaining free zone. Yet in neither case – frequency nor remuneration – is the degree of ‘compensation’ recorded other than partial.
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Bibliographic InfoPaper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2012-07.
Length: 36 pages
Date of creation: Jun 2012
Date of revision:
Orientation; Erosion of Collective Bargaining; Uncovered Sector; Sectoral Bargaining; Wages; Regime Shifts.;
Other versions of this item:
- Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2012. "Is the Erosion Thesis Overblown? Evidence from the Orientation of Uncovered Employers," IZA Discussion Papers 6658, Institute for the Study of Labor (IZA).
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-BEC-2012-07-08 (Business Economics)
- NEP-LAB-2012-07-08 (Labour Economics)
- NEP-LMA-2012-07-08 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2012-07-08 (Unemployment, Inequality & Poverty)
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GEMF Working Papers
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