No extension without representation? Evidence from a natural experiment in collective bargaining

Alexander Hijzen and Pedro Martins

IZA Journal of Labor Economics, 2020, vol. 9, issue 1, 31

Abstract: In many countries, collective bargaining coverage is enhanced by government-issued extensions that widen the reach of collective agreements beyond their signatory parties to all firms and workers in the sector. This paper analyzes the causal impact of extensions using a natural experiment in Portugal that resulted in a sharp and unanticipated decline in the extension probability of agreements. Our results, based on a regression discontinuity design, indicate that extensions had a negative impact on employment growth. This effect is concentrated among nonaffiliated firms, which may reflect the limited representativeness of employer associations.

Keywords: industrial relations; employer associations; wage setting; employment (search for similar items in EconPapers)
JEL-codes: J21 J52 J58 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (19)

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Related works:
Working Paper: No Extension without Representation? Evidence from a Natural Experiment in Collective Bargaining (2016)
Working Paper: No Extension without Representation? Evidence from a Natural Experiment in Collective Bargaining (2016)
Working Paper: No Extension Without Representation? Evidence from a Natural Experiment in Collective Bargaining (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:izajle:v:9:y:2020:i:1:p:31:n:8

DOI: 10.2478/izajole-2020-0005

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