Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data

Nicole Gürtzgen
Authors registered in the RePEc Author Service: Nicole Guertzgen (nicole.guertzgen@iab.de)

No 05-90, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Using a linked employer-employee data set, this paper analyses the relationship between firm-profitability and wages. Particular emphasis is given to the question of whether the sensitivity of wages to firm-specific rents varies with collective bargaining coverage. To address this issue, we distinguish sector- specific wage agreements, firm-specific wage agreements and wage determination without any bargaining coverage. Our findings indicate that individual wages are positively related to firm-specific rents in the non-union sector and under firm-specific contracts. Industry-wide wage contracts, however, seem to suppress firm-level rent-sharing. While pooled OLS estimates yield a positive correlation between wages and quasi-rents under centralised contracts, estimates accounting for unobserved individual and establishment heterogeneity point to a coe? cient of zero. Differenced GMM estimates accounting for the endogeneity of our profitability measure even point to a negative relationship under centralised contracts.

Keywords: Rent-Sharing; Unions; Linked Employer-Employee Data (search for similar items in EconPapers)
JEL-codes: C23 J31 J51 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/24186/1/dp0590.pdf (application/pdf)

Related works:
Journal Article: Rent‐sharing and Collective Bargaining Coverage: Evidence from Linked Employer–Employee Data (2009)
Working Paper: Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data (2006)
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: https://EconPapers.repec.org/RePEc:zbw:zewdip:4573

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics (econstor@zbw-workspace.eu).