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Firm wage premia, industrial relations,and rent sharing in Germany

Author

Listed:
  • Boris Hirsch

    () (Leuphana University Lueneburg, Germany)

  • Steffen Mueller

    () (Halle Institute for Economic Research (IWH) and University of Magdeburg, Germany)

Abstract

This paper investigates the influence of industrial relations on firm wage premia in Germany. OLS regressions for the firm effects from a two-way fixed effects decomposition of workers’ wages by Card, Heining, and Kline (2013) document that average premia are larger in firms bound by collective agreements and in firms with a works council, holding constant firm performance. RIF regressions show that premia are less dispersed among covered firms but more dispersed among firms with a works council. Hence, deunionization is the only among the suspects investigated that contributes to explaining the marked rise in the premia dispersion over time.

Suggested Citation

  • Boris Hirsch & Steffen Mueller, 2018. "Firm wage premia, industrial relations,and rent sharing in Germany," Working Paper Series in Economics 380, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:380
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    References listed on IDEAS

    as
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    Cited by:

    1. Henry S. Farber & Daniel Herbst & ilyana Kuziemko & Suresh Naidu, 2018. "Unions and Inequality Over the Twentieth Century: New Evidence from Survey Data," Working Papers 620, Princeton University, Department of Economics, Industrial Relations Section..
    2. Daniel Baumgarten & Gabriel Felbermayr & Sybille Lehwald, 2016. "Dissecting between-plant and within-plant wage dispersion - Evidence from Germany," ifo Working Paper Series 216, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Henry S. Farber & Daniel Herbst & Ilyana Kuziemko & Suresh Naidu, 2018. "Unions and Inequality Over the Twentieth Century: New Evidence from Survey Data," NBER Working Papers 24587, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    firm wage premium; industrial relations; trade unions; works councils; bargaining power; rent sharing; wage inequality; Germany;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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