Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176909 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 6890
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper investigates the influence of industrial relations on firm wage premia in Germany. OLS regressions for the firm effects from a two-way fixed effects decomposition of workers’ wages by Card, Heining, and Kline (2013) document that average premia are larger in firms bound by collective agreements and in firms with a works council, holding constant firm performance. RIF regressions show that premia are less dispersed among covered firms but more dispersed among firms with a works council. Hence, deunionization is the only among the suspects investigated that contributes to explaining the marked rise in the premia dispersion over time.
Subjects: 
firm wage premium
industrial relations
trade unions
works councils
bargaining power
rent sharing
wage inequality
Germany
JEL: 
J31
J52
J53
Document Type: 
Working Paper
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