Training and union wages

"This paper tests the hypothesis that unions, through imposing wage floors that lead to wage compression, increase on-the-job training. Our analysis focuses on Germany which provides an interesting context to test this hypothesis, due to its large scale apprenticeship programme and its collecti...

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Bibliographic Details
Main Authors: Arulampalam, Wiji, Dustmann, Christian, Schönberg, Uta
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2004
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19296290124910144729-Training-and-union-wages.htm
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author Arulampalam, Wiji
Dustmann, Christian
Schönberg, Uta
author_facet Arulampalam, Wiji
Dustmann, Christian
Schönberg, Uta
collection Library items
description "This paper tests the hypothesis that unions, through imposing wage floors that lead to wage compression, increase on-the-job training. Our analysis focuses on Germany which provides an interesting context to test this hypothesis, due to its large scale apprenticeship programme and its collective bargaining system that is based on voluntary union recognition. To guide the empirical analysis, we first develop a model of firm-financed training. A novel feature of our model is that a unionised and non-unionised sector coexist, and only unionized firms are bound by union wages. The model creates a rich set of empirical implications regarding apprenticeship training, layoffs, wage cuts, and wage compression in unionized and non-unionised firms. Our empirical analysis is based on firm panel data matched with administrative employee data, and provides strong support for our model. Our main results are that unionisation increases training, and that wage floors and wage compression play a more important role in unionised than in non-unionised firms."
format TEXT
geographic Germany
id 19296290124910144729_77a663f4699740519e87c720481255d0
institution ETUI-European Trade Union Institute
is_hierarchy_id 19296290124910144729_77a663f4699740519e87c720481255d0
is_hierarchy_title Training and union wages
language English
physical 46 p.
Digital
publishDate 2004
publisher Bonn
IZA
spellingShingle Arulampalam, Wiji
Dustmann, Christian
Schönberg, Uta
on the job training
trade union role
trade union
vocational training
wages
Training and union wages
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=118124693630
title Training and union wages
topic on the job training
trade union role
trade union
vocational training
wages
url https://www.labourline.org/KENTIKA-19296290124910144729-Training-and-union-wages.htm