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Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany

Boris Hirsch () and Steffen Müller ()
Additional contact information
Boris Hirsch: Leuphana University Lüneburg
Steffen Müller: IWH Halle

Authors registered in the RePEc Author Service: Steffen Mueller

No 11309, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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.

Keywords: firm wage premium; industrial relations; trade unions; works councils; bargaining power; rent sharing; wage inequality; Germany (search for similar items in EconPapers)
JEL-codes: J31 J52 J53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eur and nep-lma
Date: 2018-01
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Related works:
Working Paper: Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany (2018) Downloads
Working Paper: Firm wage premia, industrial relations,and rent sharing in Germany (2018) Downloads
Working Paper: Firm wage premia, industrial relations, and rent sharing in Germany (2018) Downloads
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