Firm heterogeneity and wages under different bargaining regimes: does a centralised union care for low-productivity firms?

"This paper studies the relationship between wages and the degree of firm heterogeneity in a given industry under different wage setting structures. To derive testable hypotheses, we set up a theoretical model that analyses the sensitivity of wages to the variability in productivity conditions...

Full description

Bibliographic Details
Main Author: Gürtzgen, Nicole
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Mannheim 2008
ZEW
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19188865124919060479-Firm-heterogeneity-and-wages-u.htm
_version_ 1771659900895625216
author Gürtzgen, Nicole
author_facet Gürtzgen, Nicole
collection Library items
description "This paper studies the relationship between wages and the degree of firm heterogeneity in a given industry under different wage setting structures. To derive testable hypotheses, we set up a theoretical model that analyses the sensitivity of wages to the variability in productivity conditions in a unionsised oligopoly framework. The model distinguishes centralised and decentralised wage determination. The theoretical results predict wages to be negatively associated with the degree of firm heterogeneity under centralised wage-setting, as unions internalise negative externalities of a wage increase for low-productivity firms. We test this prediction using a linked employeremployee panel data set from the German mining and manufacturing sector. Consistent with our hypotheses, the empirical results suggest that under industry-level bargaining workers in more heterogeneous sectors receive lower wages than workers in more homogeneous sectors. In contrast, the degree of firm heterogeneity is found to have no negative impact on wages in uncovered firms and under firm-level contracts. "
format TEXT
geographic Germany
id 19188865124919060479_8cde6086d4864ca58423fdca94205b24
institution ETUI-European Trade Union Institute
is_hierarchy_id 19188865124919060479_8cde6086d4864ca58423fdca94205b24
is_hierarchy_title Firm heterogeneity and wages under different bargaining regimes: does a centralised union care for low-productivity firms?
language English
physical 19 p.
Digital
publishDate 2008
publisher Mannheim
ZEW
spellingShingle Gürtzgen, Nicole
collective bargaining
manufacturing industry
mining
trade union role
wage determination
Firm heterogeneity and wages under different bargaining regimes: does a centralised union care for low-productivity firms?
title Firm heterogeneity and wages under different bargaining regimes: does a centralised union care for low-productivity firms?
topic collective bargaining
manufacturing industry
mining
trade union role
wage determination
url https://www.labourline.org/KENTIKA-19188865124919060479-Firm-heterogeneity-and-wages-u.htm