Wage distributions by wage-setting regime

Abstract

"Collective wage contracts impose restrictions on wage-setting. We utilize German linked employer-employee data for blue-collar worker to compute the dispersion of wages and wage components within and across firms under three different wage-setting regimes: Establishments applying sectoral collective contracts, establishments with firm-level contracts and uncovered establishments. The empirical analysis confirms a lower dispersion of wages and wage components for firms applying sectoral collective contracts compared to companies in the other two wage-setting regimes. Implications for policy are discussed." (Author's abstract, IAB-Doku) ((en))

Cite article

Gerlach, K. & Stephan, G. (2005): Wage distributions by wage-setting regime. (IAB-Discussion Paper 09/2005), Nürnberg, 30 p.