Organised labour, labour market imperfections, and employer wage premia

Arbeitspapier

This paper examines how collective bargaining through unions and workplace co-determination through works councils relate to labour market imperfections and how labour market imperfections relate to employer wage premia. Based on representative German plant data for the years 1999-2016, we document that 70% of employers pay wages below the marginal revenue product of labour and 30% pay wages above. We further find that the prevalence of wage mark-downs is signifi cantly smaller when organised labour is present and that the ratio of wages to the marginal revenue product of labour is significantly bigger. Finally, we document a close link between labour market imperfections and mean employer wage premia, that is wage differences between employers corrected for worker sorting.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IWH Discussion Papers ; No. 20/2022

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Empirical Analysis ; Wage Level and Structure; Wage Differentials ; Monopsony; Segmented Labor Markets ; Labor-Management Relations, Trade Unions, and Collective Bargaining: General
• Thema: collective wage agreements ; employer monopsony ; employer wage premia ; labour market power ; wage mark-downs ; wage mark-ups ; worker monopoly ; works councils

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dobbelaere, Sabien ; Hirsch, Boris ; Müller, Steffen ; Neuschäffer, Georg
• Ereignis: Veröffentlichung
• (wer): Halle Institute for Economic Research (IWH)
• (wo): Halle (Saale)
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/279669
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ