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Training and Union wages

Dustmann, C.; Schonberg, U.; (2009) Training and Union wages. The Review of Economics and Statistics , 91 (2) pp. 363-376. 10.1162/rest.91.2.363. Green open access

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Abstract

This paper investigates whether unions, through imposing wage floors that lead to wage compression, increase on-the-job training. Our analysis focuses on Germany. Based on a model of unions and firm-financed training, we derive empirical implications regarding apprenticeship training intensity, layoffs, wage cuts, and wage compression in unionized and nonunionized firms. We test these implications using firm panel data matched with administrative employee data. We find support for the hypothesis that union recognition, via imposing minimum wages and wage compression, increases training in apprenticeship programs.

Type: Article
Title: Training and Union wages
Open access status: An open access version is available from UCL Discovery
DOI: 10.1162/rest.91.2.363
Publisher version: http://dx.doi.org/10.1162/rest.91.2.363
Language: English
Additional information: © 2009 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/16427
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