Arbeitspapier

Rent-sharing under different bargaining regimes: evidence from linked employer-employee data

In many European countries, the majority of workers have their wages directly defined by industry-level agreements. In addition, for some workers, industry agreements are complemented by firm-specific agreements. Yet, the relative importance of firm and industry agreements (in other words, the degree of centralization) differs drastically across industries. The authors of this paper use unique linked employer-employee data from a 2003 survey in Belgium to examine how these bargaining features affect the extent of rent-sharing. Their results show that there is substantially more rent-sharing in decentralized than in centralized industries, even when controlling for the endogeneity of profits, for heterogeneity among workers and firms and for differences in characteristics between bargaining regimes. Moreover, in centralized industries, rent-sharing is found only for workers that are covered by a firm agreement. Finally, results indicate that within decentralized industries, both firm and industry bargaining generate rent-sharing to the same extent.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 3406

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Subject
Rent-sharing
collective bargaining
propensity score matching
Tarifpolitik
Lohnverhandlungen
Betriebsvereinbarung
Vergleich
Lohnbildung
Rententheorie
Belgien

Event
Geistige Schöpfung
(who)
Rusinek, Michael
Rycx, François
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2008

Handle
URN
urn:nbn:de:101:1-2008032089
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Rusinek, Michael
  • Rycx, François
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2008

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