EconPapers    
Economics at your fingertips  
 

Bargaining Regimes and Wage Dispersion

Gerlach Knut () and Gesine Stephan
Additional contact information
Gerlach Knut: Institut für Arbeitsökonomie, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover, Königsworther Platz 1, D-30167 Hannover, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2006, vol. 226, issue 6, pages 629-645

Abstract: Collective wage contracts impose restrictions on wage-setting. We utilize German linked employer-employee data for blue-collar worker to compute the dispersion of wages and wage components within and across firms under three different wage-setting regimes: Establishments applying industry-wide collective contracts, establishments with firm-level contracts and uncovered establishments. The empirical analysis confirms a lower dispersion of wages and in particular “worker quality indices” for firms applying sectoral collective contracts compared to companies in the other two wage-setting regimes. Between the years 1990, 1995 and 2001 the dispersion of wages increases, and this is valid too for firms covered by industry-wide collective contracts. A sensitivity analysis demonstrates that the results retain their statistical significance and do not change qualitatively if we modify the minimum firm size (establishments with at least 50,100 and 250 employees) or take into account the endogeneity of tenure or self-selection of workers into bargaining regimes.

Keywords: Wage compression; collective contracts; establishment effects on wages (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/jbnst.2006.226.is ... -0605.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jns:jbstat:v:226:y:2006:i:6:p:629-645

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/jbnst

Access Statistics for this article

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by Peter Winker

More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from De Gruyter
Series data maintained by Peter Golla ().

 
Page updated 2017-02-27
Handle: RePEc:jns:jbstat:v:226:y:2006:i:6:p:629-645