Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/106271
Authors: 
Eliasson, Tove
Nordström Skans, Oskar
Year of Publication: 
2014
Series/Report no.: 
Working Paper, IFAU - Institute for Evaluation of Labour Market and Education Policy 2014:10
Abstract: 
This paper investigates the impact of a collective agreement stipulating a one shot increase in establishment-specific wage levels in a public-sector setting where wages otherwise are set according to individualized wage bargaining. The agreement stipulated that wages should increase in proportion to the number of low-paid females within each establishment. We find that actual wages among incubents responded to the share of females with a wage below the stipulated threshold, conditional on the separate effects of the share of low wage earners, and the share of females. We find clear evidence of path-dependence in wages, covered workers remained on higher wage levels 4 years after the agreement took effect. The increase in wages resulted in a reduced probability of exit among young workers with relatively good grades and a lower frequency of new hires at the establishment level.
Subjects: 
collective bargaining
wage growth
turnover
wage rigidity
hours of work
labor costs
JEL: 
J23
J31
J52
J63
Document Type: 
Working Paper

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