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Testing between alternative wage-employment bargaining models using Belgian aggregate data

Author

Listed:
  • VANNETELBOSCH, V. J.

Abstract

In this paper, I discriminate among alternative models of bargaining for wages and employment (right-to-manage, efficient bargaining and general bargaining models) using Belgian aggregate data. I estimate the ECM representation of a dynamic employment equation for each model using Engle-Granger’s two-step estimation procedure. I use Phillips-Hansen’s FME to obtain long-run parameters’ estimators which are optimal and asymptotically normally distributed. On the basis of non-nested tests, both the right-to-manage and the hypothesis that wage-employment negotiations are efficient are ejected in favour of the general bargaining model where outcomes are inefficient.
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Suggested Citation

  • Vannetelbosch, V. J., 1996. "Testing between alternative wage-employment bargaining models using Belgian aggregate data," LIDAM Reprints CORE 1233, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1233
    DOI: 10.1016/0927-5371(95)00003-8
    Note: In : Labour Economics, 3, 43-64, 1996
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    Cited by:

    1. Ana Mauleon & Jose J. Sempere-Monerris & Vincent Vannetelbosch, 2008. "Networks of knowledge among unionized firms," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 971-997, August.
    2. Guy Navon & Ilan Tojerow, 2006. "The Effects of Rent-sharing On the Gender Wage Gap in the Israeli Manufacturing Sector," Bank of Israel Working Papers 2006.05, Bank of Israel.
    3. Vannetelbosch, Vincent J., 1997. "Wage bargaining with incomplete information in an unionized Cournot oligopoly," European Journal of Political Economy, Elsevier, vol. 13(2), pages 353-374, May.
    4. Plasman, Robert & Rycx, François & Tojerow, Ilan, 2006. "Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002," IZA Discussion Papers 2387, Institute of Labor Economics (IZA).
    5. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Inter‐Industry Wage Differentials: How Much Does Rent Sharing Matter?," Manchester School, University of Manchester, vol. 79(4), pages 691-717, July.
    6. Nicholas Lawson, 2011. "Is Collective Bargaining Pareto Efficient? A Survey of the Literature," Journal of Labor Research, Springer, vol. 32(3), pages 282-304, September.
    7. Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," IZA Discussion Papers 3844, Institute of Labor Economics (IZA).
    8. François Rycx & Ilan Tojerow, 2004. "Rent sharing and the gender wage gap in Belgium," International Journal of Manpower, Emerald Group Publishing Limited, vol. 25(3/4), pages 279-299, April.
    9. Brännlund, Runar & Nordström, Jonas & Svedin, Dick, 2004. "Foreign ownership and effects on employment and wages: The case of Sweden," Umeå Economic Studies 638, Umeå University, Department of Economics, revised 01 Nov 2004.
    10. Ana MAULEON & Vincent J. VANNETELBOSCH, 2001. "Product Market Integration, Wage Bargaining and Strike Activity," LIDAM Discussion Papers IRES 2001022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    11. MAULEON, Ana & VANNETLEBOSCH, Vincent J., 2001. "Efficiency Wages, Unio-Firm Bargaining, and Strikes," LIDAM Discussion Papers IRES 2001010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    12. Rupayan Pal & Bibhas Saha, 2016. "Entry Threats and Inefficiency in ‘Efficient Bargaining’," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 258-277, July.
    13. Robert Plasman & François Rycx & Ilan Tojerow, 2006. "Industry wage differentials, unobserved ability, and rent-sharing: evidence from matched employer-employee, 1992-2005," DULBEA Working Papers 06-14.RS, ULB -- Universite Libre de Bruxelles.
    14. Mauleon, Ana & Vannetelbosch, Vincent J., 2003. "Market competition and strike activity," International Journal of Industrial Organization, Elsevier, vol. 21(5), pages 737-758, May.
    15. Andrea Garnero & François Rycx & Isabelle Terraz, 2020. "Productivity and Wage Effects of Firm‐Level Collective Agreements: Evidence from Belgian Linked Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 936-972, December.
    16. Milas, Costas, 1998. "Long-run structural estimation of labour market equations with an application to Greece1," Economic Modelling, Elsevier, vol. 16(1), pages 149-161, January.
    17. Ana Mauleon & Vincent Vannetelbosch, 1999. "Profit sharing and strike activity in Cournot oligopoly," Journal of Economics, Springer, vol. 69(1), pages 19-40, February.
    18. Runar Brännlund & Jonas Nordström & Jesper Stage & Dick Svedin, 2016. "Foreign ownership and its effects on employment and wages: the case of Sweden," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-17, December.
    19. repec:pri:indrel:dsp01cc08hf62w is not listed on IDEAS
    20. Guy Navon & Ilan Tojerow, 2013. "Does Rent-sharing Profit Female and Male Workers? Evidence from Israeli Matched Employer–Employee Data," LABOUR, CEIS, vol. 27(3), pages 331-349, September.
    21. Michael Rusinek, 2009. "Wages and the bargaining regimes in corporatists countries: a series of empirical essays," ULB Institutional Repository 2013/210322, ULB -- Universite Libre de Bruxelles.

    More about this item

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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