Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 05-90

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Trade Unions: Objectives, Structure, and Effects
Wage Level and Structure; Wage Differentials
Subject
Rent-Sharing
Unions
Linked Employer-Employee Data
Lohnbildung
Rentabilität
Lohnverhandlungstheorie
Rententheorie
Tarifpolitik
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Gürtzgen, Nicole
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2005

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Gürtzgen, Nicole
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2005

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