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Wage settlements and wage setting: results from a multi-level model

  • Gesine Stephan
  • Knut Gerlach

Which dimensions of wage setting differ across establishments applying collective contracts and uncovered establishments? The empirical analysis reported here utilizes German linked employer-employee data for the years 1990, 1995 and 2001 and is restricted to workers without supervisory functions in larger manufacturing firms. Results show that the expected wage of an average worker is higher in firms applying collective contracts, while returns to human capital and the gender wage gap are reduced. Moreover, during the 1990s these effects became stronger.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 37 (2005)
Issue (Month): 20 ()
Pages: 2297-2306

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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2297-2306
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  7. Booth, Alison L & Bryan, Mark L, 2001. "The Union Membership Wage Premium Puzzle: Is There A Free-Rider Problem?," CEPR Discussion Papers 2879, C.E.P.R. Discussion Papers.
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