Estimating the wage premium of collective wage contracts - evidence from longitudinal linked employer-employee data


Gürtzgen, Nicole


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URL: https://ub-madoc.bib.uni-mannheim.de/32642
URN: urn:nbn:de:bsz:180-madoc-326421
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 12-073
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > Zentrum für Europ. Wirtschaftsforschung (ZEW)
MADOC publication series: Veröffentlichungen des ZEW (Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J31 , J51,
Subject headings (SWD): Deutschland , Tariflohn , Lohn , Gewerkschaftsmitgliedschaft , Schätzung
Keywords (English): Union wage premium , collective bargaining coverage
Abstract: Using a large-scale linked-employer-employee data set from western Germany, this paper presents new evidence on the wage premium of collective bargaining contracts. In contrast to previous studies, we seek to assess the extent to which differences in wages between workers in covered and uncovered firms arise from the non-random selection of workers and firms into collective bargaining coverage. By measuring the relative wage changes of workers employed in firms that change contract status, we obtain estimates that depart considerably from previous results relying on cross-sectional data. Results from analysing separate transitions show that leaving industry-level contracts is associated with subsequent wage losses. However, the results from a trendadjusted difference-in-difference approach indicate that the particularly the transitions to no-coverage appear to be associated with negative shocks. Overall, our findings provide no evidence of a ”true” wage effect of leaving wage bargaining, once differences in pre-transition wage growth are accounted for.

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Gürtzgen, Nicole (2012) Estimating the wage premium of collective wage contracts - evidence from longitudinal linked employer-employee data. Open Access ZEW Discussion Papers Mannheim 12-073 [Working paper]
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