International Trade and Collective Bargaining Outcomes: Evidence from German Employer-Employee Data

Gabriel J Felbermayr (), Andreas Hauptmann and Hans-Joerg Schmerer ()

No Ifo Working Paper No. 130, Ifo Working Paper Series from Ifo Institute for Economic Research at the University of Munich

Abstract: In theoretical trade models with variable markups and collective wage bargaining, exportexposure may reduce the exporter wage premium. We test this prediction using linkedGerman employer-employee data from 1996 to 2007. To separate the rent-sharingmechanism from assortative matching, we exploit individual worker information toconstruct profitability measures that are free of skill composition. We find that rentsharingis less pronounced in more export intensive firms or in more open industries.The exporter wage premium is highest for low productivity firms. In line with theory,these findings are unique to the subsample of plants covered by collective bargaining.

Keywords: Trade; collective bargaining; employer-employee data (search for similar items in EconPapers)
JEL-codes: E24 F16 J30 J51 (search for similar items in EconPapers)
Date: 2012
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Working Paper: International trade and collective bargaining outcomes: evidence from German employer-employee data (2012)
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