Abstract:
This paper investigates the influence of industry-wide collective contracts and individual contracts on the gender wage gap using the Salary and Wage Structure Survey for Lower Saxony, Germany. Women in particular appear to benefit from employment in firms applying industry-wide collective contracts. Thus, in 2006 women under collective bargaining coverage could reach on average a hypothetical wage that is equal to 82 percent of their actual wage if they would work under individual contracts, while men working in establishments applying sectoral collective contracts could get 87 percent of their actual wage then. Therefore, the observed considerable decline of collective bargaining coverage is particularly disadvantageous for women.