UCL logo

UCL Discovery

UCL home » Library Services » Electronic resources » UCL Discovery

Unionization, stochastic dominance, and compression of the wage distribution: evidence from Germany

Burda, M.; Fitzenberger, B.; Lembcke, A.; Vogel, T.; (2008) Unionization, stochastic dominance, and compression of the wage distribution: evidence from Germany. (Sonderforschungsbereich 649: Ökonomisches Risiko Discussion Papers 2009-041). Wirtschaftswissenschaftliche Fakultät, Humboldt-Universität zu Berlin: Berlin, Germany.

Full text not available from this repository.

Abstract

This paper establishes theoretical and empirical linkages between union wage setting and the structure of the wage distribution. Theoretically, we identify conditions under which a right-to-manage model implies compression of the wage distribution in the union sector relative to the nonunion sector as well as first-order stochastic dominance. These implications are investigated using quantile regressions on the 2001 GSES, a large German linked employer–employee data set which contains explicit information on coverage by collective agreements. The empirical results confirm that, in case of industry-wide collective agreements, log union wage effects decline in quantiles, implying union wage compression. This finding, however, cannot be corroborated for wages determined at the firm level. Stochastic dominance is confirmed, as predicted by the theoretical model, for both types of collective agreements.

Type: Working / discussion paper
Title: Unionization, stochastic dominance, and compression of the wage distribution: evidence from Germany
Publisher version: http://sfb649.wiwi.hu-berlin.de/fedc/discussionPap...
Language: English
Keywords: Union wage effect, stochastic dominance, wage compression, quantile regressions, Machado-Mata decomposition
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of SandHS > Dept of Economics
URI: http://discovery.ucl.ac.uk/id/eprint/18828
Downloads since deposit
0Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item