Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data

Michael Rusinek () and Francois Rycx

No 3406, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In many European countries, the majority of workers have their wages directly defined by industry-level agreements. In addition, for some workers, industry agreements are complemented by firm-specific agreements. Yet, the relative importance of firm and industry agreements (in other words, the degree of centralization) differs drastically across industries. The authors of this paper use unique linked employer-employee data from a 2003 survey in Belgium to examine how these bargaining features affect the extent of rent-sharing. Their results show that there is substantially more rent-sharing in decentralized than in centralized industries, even when controlling for the endogeneity of profits, for heterogeneity among workers and firms and for differences in characteristics between bargaining regimes. Moreover, in centralized industries, rent-sharing is found only for workers that are covered by a firm agreement. Finally, results indicate that within decentralized industries, both firm and industry bargaining generate rent-sharing to the same extent.

Keywords: propensity score matching; collective bargaining; rent-sharing (search for similar items in EconPapers)
JEL-codes: J31 J51 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2008-03
New Economics Papers: this item is included in nep-bec and nep-lab
References: View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published - published in: British Journal of Industrial Relations, 2013, 51 (1), 28-58

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Related works:
Journal Article: Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer–Employee Data (2013)
Working Paper: Rent-Sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data (2013)
Working Paper: Rent-sharing under Different Bargaining Regimes: Evidence from Linked Employer-Employee Data (2009)
Working Paper: Rent-sharing under different bargaining regimes: evidence from linked employer-employee data (2008)
Working Paper: Rent-sharing under different bargaining regimes: Evidence from linked employer-employee data (2008)
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