Wages above the collectively agreed level: a result of anticipated negotiations

Abstract

"The failure of the more recent attempts to discriminate between alternative explanation approaches of wages above the collectively agreed level (market, negotiation, and efficiency wage approach) (cf. last Bellman/Kohaut 1995 in this journal) is probably not the result of a data deficit, but of a theory deficit. In this article an attempt is made to reduce this theory deficit. Anew explanation approach is developed, the approach of anticipated or implied negotiations, in which it is assumed that that the employer anticipates the result of a negotiation with the employee in order to save the costs of an argument with him/her. In contrast to the approach of a collective 'second wage round' at company level, however, individual negotiations are assumed. The degree to which wages are paid above the collectively agreed level depends in the result both on a number of company-specific factors and on market and institutional factors. The conclusions are surprisingly consistent with the stylized facts of the labour market - even though the 'works council' was completely neglected as an institution." (Author's abstract, IAB-Doku) ((en))

Cite article

Pull, K. (1996): Übertarifliche Entlohnung. Ein Ergebnis vorweggenommener Verhandlungen. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 29, No. 4, p. 607-615.