IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2507.01458.html
   My bibliography  Save this paper

Pay Clauses in Public Procurement: The Wage Impact of Collective Bargaining Compliance Laws in Germany

Author

Listed:
  • Vinzenz Pyka

Abstract

Using administrative data from Germany, this study provides first evidence on the wage effects of collective bargaining compliance laws. These laws require establishments receiving public contracts to pay wages set by a representative collective agreement, even if they are not formally bound by one. Leveraging variation in the timing of law implementation across federal states, and focusing on the public transport sector -- where regulation is uniform and demand is driven solely by state-level needs -- I estimate dynamic treatment effects using event-study designs. The results indicate that within five years of the law's implementation, wage increases were on average 2.9\% to 4.6\% higher in federal states with such a law compared to those without one -- but only in East Germany. These findings highlight the potential for securing collectively agreed wages in times of declining collective bargaining coverage.

Suggested Citation

  • Vinzenz Pyka, 2025. "Pay Clauses in Public Procurement: The Wage Impact of Collective Bargaining Compliance Laws in Germany," Papers 2507.01458, arXiv.org.
    • Handle: RePEc:arx:papers:2507.01458
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2507.01458
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2507.01458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.