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« Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence from France »

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  • Christophe Daniel

    (LEO - Laboratoire d'Économie d'Orleans [FRE2014] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

  • Catherine Sofer

    (LEO - Laboratoire d'Économie d'Orleans [FRE2014] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

The theory of compensating differentials predicts a negative relationship between wages and good working conditions, while the theory of segmentation predicts a positive one. Combining the hedonic wage model and the wages‐employment collective bargaining model, we show the relevance of a further factor: a union power effect. Then we test the validity of this effect with French cross‐section data. Empirical results confirm the predictions of the model, that is, the coexistence of a negative relationship between wages and good working conditions for the whole sample (market effect) and a positive relationship in highly unionized sectors (union power effect).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Christophe Daniel & Catherine Sofer, 1998. "« Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence from France »," Post-Print hal-02864154, HAL.
    • Handle: RePEc:hal:journl:hal-02864154
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