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| Title: | | Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data  |
| Authors: | | Gürtzgen, Nicole |
| Issue Date: | | 2006 |
| Series/Report no.: | | ZEW Discussion Papers 05-90 [rev.] |
| Abstract: | | Using a linked employer-employee data set, this paper analyses the relationship between firm profitability and wages. Particular emphasis is given to the question of whether the sensitivity of wages to firm-specific rents varies with collective bargaining coverage. To address this issue, we distinguish sector-specific wage agreements, firm-specific wage agreements and wage determination without any bargaining coverage. Our findings indicate that individual wages are positively related to firm-specific quasi-rents in the non-union sector and under firm-specific contracts. Industry-wide wage contracts, however, seem to suppress firm-level rent-sharing. While pooled OLS estimates yield a positive correlation between wages and quasirents under centralised contracts, estimates accounting for unobserved individual and establishment heterogeneity point to a coefficient of zero. Finally, GMM estimates using suitable lagged values as instruments indicate that this result appears to be robust to the endogeneity of quasi-rents. |
| Subjects: | | Rent-Sharing Unions Linked Employer-Employee Data |
| JEL: | | C23 J31 J51 |
| older Version: | | http://hdl.handle.net/10419/24186 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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