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Wages and the bargaining regime in a corporatist setting: the Netherlands

  • Hartog, Joop
  • Leuven, Edwin
  • Teulings, Coen

In a corporatist country like the Netherlands, wages should not be distinguished by union membership status, but by bargaining regime. Acknowledging only the firms’ bargaining regime, we find small differences between four regimes and certainly no distinction between ‘covered’ and ‘uncovered’ firms. Distinguishing – within covered firms – between workers covered and uncovered by collective bargaining, including a model with partially unobserved sector selection, we find somewhat larger bargaining regime effects, and sometimes substantial coverage effects. Estimation of the latter, is seriously troubled by unobserved heterogeneity, however.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 18 (2002)
Issue (Month): 2 (June)
Pages: 317-331

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Handle: RePEc:eee:poleco:v:18:y:2002:i:2:p:317-331
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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  1. Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  2. repec:cup:cbooks:9780521464673 is not listed on IDEAS
  3. William T. Dickens & Kevin Lang, 1984. "A Test of Dual Labor Market Theory," NBER Working Papers 1314, National Bureau of Economic Research, Inc.
  4. William T. Dickens & Kevin Lang, 1985. "Testing Dual Labor Market Theory: A Reconsideration of the Evidence," NBER Working Papers 1670, National Bureau of Economic Research, Inc.
  5. Stewart, Mark B, 1986. "Collective Bargaining Arrangements Closed Shops and Relative Pay," The Warwick Economics Research Paper Series (TWERPS) 273, University of Warwick, Department of Economics.
  6. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1.
  7. Christie, Virginia, 1992. "Union Wage Effects and the Probability of Union Membership," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 43-56, March.
  8. Robinson, Chris & Tomes, Nigel, 1984. "Union Wage Differentials in the Public and Private Sectors: A Simultaneous Equations Specification," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 106-27, January.
  9. van den Berg, Annette & Groot, Wim, 1992. "Union Membership in the Netherlands: A Cross-Sectional Analysis," Empirical Economics, Springer, vol. 17(4), pages 537-64.
  10. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-59, October.
  11. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
  12. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-67, June.
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