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Rent-sharing and collective bargaining coverage

Abstract

"Using a linked employer-employee dataset, 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- and firm-specific wage agreements and wage determination without any bargaining coverage. Our findings indicate that individual wages are positively related to firm-specific quasi-rents in the non-union sector and under firm-specific contracts. Industry-wide wage contracts, however, are associated with a significantly lower responsiveness of wages to firm-level profitability." (Author's abstract, IAB-Doku) ((en))

Cite article

Gürtzgen, N. (2009): Rent-sharing and collective bargaining coverage. Evidence from linked employer-employee data. In: The Scandinavian journal of economics, Vol. 111, No. 2, p. 323-349. DOI:10.1111/j.1467-9442.2009.01566.x