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Impact of Opening Clauses on Bargained Wages

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Author Info
Wolf Dieter Heinbach ()

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Abstract

This paper is an analysis of the impact of different bargaining regimes on firm-specific wages and wage dispersion. In recent years, firms in Germany favored more flexible than collective bargained wages. Opening clauses were introduced to combine collective bargaining and flexible adaptation of e.g. wages to firm-specific needs. In an own survey, it was evaluated whether central collective agreements contain these opening clauses. Then, the gathered information about opening clauses were linked to the Salary and Wage Structure Survey 2001. Focussing on central bargaining agreements, it has been tested whether bargained wages and wage dispersion differ under opened central bargaining coverage from that of non-opened central bargaining regimes. While wages with collective bargaining regimes tend to be higher, it could be found that wage dispersion under opened central collective bargaining coverage is slightly wider compared to non-opened central bargaining regime.

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File URL: http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_22.pdf
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Publisher Info
Paper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 22.

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Length: 34 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:iaw:iawdip:22

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Related research
Keywords: wages and wage dispersion; opening clauses; collective bargaining;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Wolfgang Ochel, 2003. "Decentralising Wage Bargaining in Germany -- A Way to Increase Employment?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Richard B. Freeman, 1982. "Union wage practices and wage dispersion within establishments," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 36(1), pages 3-21, October.
    Other versions:
  3. Gerlach, Knut & Stephan, Gesine, 2005. "Wage distributions by wage-setting regime," IAB Discussion Paper 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  4. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-79, July. [Downloadable!] (restricted)
  5. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, vol. 45(10), pages 1851-1875, December. [Downloadable!] (restricted)
  6. Lemieux, Thomas, 1998. "Estimating the Effects of Unions on Wage Inequality in a Panel Data Model with Comparative Advantage and Nonrandom Selection," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 261-91, April. [Downloadable!] (restricted)
  7. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nicole Gürtzgen, 2006. "The effect of firm- ans industry-level contracts on wages : evidence from longitudinal linked employer-employee data," ZEW Discussion Papers 06-82, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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This page was last updated on 2009-11-10.

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