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Behindern Flächentarifverträge eine betriebliche Differenzierung der Entlohnung? (Do industry-level contracts suppress firm wage differentials?)

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  • Gürtzgen, Nicole

    (ZEW)

Abstract

"This article studies the role of collective bargaining coverage for the relationship between wages and firm-specific performance. The empirical evidence based upon German linked employer-employee data provides support for the hypothesis that industry-level contracts suppress firm wage differentials that arise from firm-specific profitability conditions. Addressing the role of the frequency of shocks to firm performance, the evidence further suggests that the insensitivity of wages to firm-specific productivity fluctuations is mainly driven by the insulation of wages from transitory shocks. For permanent shocks, however, the evidence points to somewhat more flexible wages as - at least at large employers - wages are found to significantly respond to permanent productivity fluctuations. As to the role of firm heterogeneity in a given industry, the empirical results also show that under industry-level bargaining workers in more heterogeneous sectors receive lower wages than workers in more homogeneous sectors. This may be interpreted as evidence that centralised unions internalise negative implications of a compressed industry wage structure for below-average performing firms." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Gürtzgen, Nicole, 2011. "Behindern Flächentarifverträge eine betriebliche Differenzierung der Entlohnung? (Do industry-level contracts suppress firm wage differentials?)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 155-161.
  • Handle: RePEc:iab:iabzaf:v:44:i:1-2:p:155-161
    DOI: 10.1007/s12651-011-0055-9
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