Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80700
Authors: 
Addison, John T.
Teixeira, Paulino
Evers, Katalin
Bellmann, Lutz
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7474
Abstract: 
This study provides updated evidence on the union contract differential in Germany using establishment-wide wage data and two estimation strategies. It provides pairwise estimates of the union differential based on separate samples of collective bargaining leavers and joiners vis-à-vis the corresponding counterfactual groups. It is reported that average wages increase by 3 to 3.5 percent after entering into a collective agreement and decrease by 3 to 4 percent after abandoning a collective agreement. Excluding establishments that experience mass layoffs little influences these net findings, although such establishments record wage losses - statistically insignificant for joiners but up to 10 percent in the case of leavers, as compared with the counterfactuals. The backdrop to these new indicative estimates, which are properly conditioned on establishment size and industry affiliation, inter al., is one of wage stagnation and continuing union decline.
Subjects: 
average wages
union contract premium
collective bargaining transitions
difference-in-differences
matching
Germany
JEL: 
J31
J51
Document Type: 
Working Paper

Files in This Item:
File
Size
407.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.