Abstract
The authors use three distinct methods to investigate the influence of industrial relations on firm wage premia in Germany. First, ordinary least squares (OLS) regressions for the firm effects from a two-way fixed-effects decomposition of workers’ wages reveal that average premia are larger in firms bound by collective agreements and in firms with a works council, holding constant firm performance. Next, recentered influence function (RIF) regressions show that premia are less dispersed among covered firms but more dispersed among firms with a works council. Finally, in an Oaxaca–Blinder decomposition, the authors find that decreasing bargaining coverage is the only factor they consider that contributes to the marked rise in premia dispersion over time.
| Original language | English |
|---|---|
| Journal | Industrial and Labor Relations Review |
| Volume | 73 |
| Issue number | 5 |
| Pages (from-to) | 1119-1146 |
| Number of pages | 28 |
| ISSN | 0019-7939 |
| DOIs | |
| Publication status | Published - 01.10.2020 |
Bibliographical note
Funding Information:We thank Paul Beaudry, Michael Böhm, Alex Bryson, Michael Burda, Stefano Collonello, Bernd Fitzenberger, Hanna Frings, Giovanni Gallipoli, Nicole Gürtzgen, Florian Hoffmann, Pat Kline, Claus Schnabel, Heiko Stüber, and two referees for very useful suggestions. We further appreciate comments by participants of the SOLE 2017 and VfS 2017 conferences and the Pakt Project Workshop on “Worker Flows, Match Quality, and Productivity” and by seminar participants in Berkeley, Berlin, Lüneburg, and Vancouver. Last but not least, we thank Alexander Giebler and Georg Märker for excellent research assistance.
Publisher Copyright:
© The Author(s) 2020.
Research areas and keywords
- Economics
- firm wage premium
- industrial relations
- trade unions
- works councils
- bargaining power
- rent sharing
- wage inequality
- Germany
ASJC Scopus Subject Areas
- Strategy and Management
- Management of Technology and Innovation
- Organizational Behavior and Human Resource Management
Access to Document
Fingerprint
Dive into the research topics of 'Firm wage premia, industrial relations, and rent sharing in Germany'. Together they form a unique fingerprint.Datasets
-
Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany
Hirsch, B. (Creator) & Mueller, S. (Creator), SAGE Publications Inc., 13.05.2020
DOI: 10.25384/sage.c.4975976, https://sage.figshare.com/collections/Firm_Wage_Premia_Industrial_Relations_and_Rent_Sharing_in_Germany/4975976/1
Dataset
-
Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany
Hirsch, B. (Creator) & Mueller, S. (Creator), SAGE Publications Inc., 2020
Dataset