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International Trade and Collective Bargaining Outcomes: Evidence from German Employer-Employee Data

  • Gabriel J. Felbermayr
  • Andreas Hauptmann
  • Hans-Jörg Schmerer

In theoretical trade models with variable markups and collective wage bargaining, exportexposure may reduce the exporter wage premium. We test this prediction using linkedGerman employer-employee data from 1996 to 2007. To separate the rent-sharingmechanism from assortative matching, we exploit individual worker information toconstruct profitability measures that are free of skill composition. We find that rentsharingis less pronounced in more export intensive firms or in more open industries.The exporter wage premium is highest for low productivity firms. In line with theory,these findings are unique to the subsample of plants covered by collective bargaining.

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Paper provided by Ifo Institute - Leibniz Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 130.

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Date of creation: 2012
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Handle: RePEc:ces:ifowps:_130
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