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Wage distributions by bargaining regime: linked employer-employee data evidence from Germany

Kohn, K.; Lembcke, A.; (2007) Wage distributions by bargaining regime: linked employer-employee data evidence from Germany. (Discussion Paper 2849). Institut zur Zukunft der Arbeit (IZA): Bonn, Germany. Green open access

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Abstract

Using linked employer-employee data from the German Structure of Earnings Survey 2001, this paper provides a comprehensive picture of the wage structure in three wage-setting regimes prevalent in the German system of industrial relations. We analyze wage distributions for various labor market subgroups by means of kernel density estimation, variance decompositions, and individual and firm-level wage regressions. Unions' impact through collective and firm-level bargaining mainly works towards a higher wage level and reduced overall and residual wage dispersion. Yet observed effects are considerably heterogeneous across different labor market groups. There is no clear evidence for wage floors formed by collectively bargained low wage brackets which would operate as minimum wages for different groups of workers.

Type: Working / discussion paper
Title: Wage distributions by bargaining regime: linked employer-employee data evidence from Germany
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.iza.org/en/webcontent/publications/pape...
Language: English
Keywords: Collective wage bargaining, wage structure, kernel density estimation, variance decomposition, wage equations, German Structure of Earnings Survey
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/18800
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