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The Wage Effects of Employers' Associations: A Case Study of the Private Schools Sector

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  • Martins, Pedro S.

    (Nova School of Business and Economics)

Abstract

Does employers' association (EA) membership affect wages? Such effects, positive or negative, could follow from increased productivity, employer collusion, or other channels. We analyse this question drawing on matched employer-employee panel data, including time-varying EA affiliation and worker mobility. We consider the case of private schools in Portugal, 2010-2020, and its single EA, and develop a method to define the sector's scope. We find that school fixed effects reduce the EA wage premium considerably. However, such positive premium remains, especially when focusing on the key occupation of the industry (teachers) and when considering EA firms that follow firm-specific (non-EA) collective agreements. We also find that there is an EA wage premium for schools that join the EA, while the EA premium does not disappear for schools that leave the EA.

Suggested Citation

  • Martins, Pedro S., 2023. "The Wage Effects of Employers' Associations: A Case Study of the Private Schools Sector," IZA Discussion Papers 16476, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16476
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    References listed on IDEAS

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    1. Pierre Cahuc & Pauline Carry & Franck Malherbet & Pedro S Martins, 2022. "Employment Effects of Restricting Fixed-Term Contracts: Theory and Evidence," Working Papers hal-03881622, HAL.
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    14. Martins, Pedro S. & Thomas, Jonathan P., 2022. "Training, Worker Mobility, and Employer Coordination," IZA Discussion Papers 15488, Institute of Labor Economics (IZA).
    15. Ferreira, João R. & Martins, Pedro S., 2023. "Can Vocational Education Improve Schooling and Labour Outcomes? Evidence from a Large Expansion," IZA Discussion Papers 16474, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    employers organisations; worker mobility; social dialogue;
    All these keywords.

    JEL classification:

    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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