Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France
The theory of compensating differentials predicts a negative relationship between wages and good working conditions, while the theory of segmentation predicts a positive one. Combining the hedonic wage model and the wages‐employment collective bargaining model, we show the relevance of a further factor: a union power effect. Then we test the validity of this effect with French cross‐section data. Empirical results confirm the predictions of the model, that is, the coexistence of a negative relationship between wages and good working conditions for the whole sample (market effect) and a positive relationship in highly unionized sectors (union power effect).
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|Date of creation:||Jul 1998|
|Publication status:||Published in Journal of Labor Economics, University of Chicago Press, 1998, 16 (3), pp.546-575. 〈10.1086/209898〉|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00367153|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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