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Rent‐sharing and Collective Bargaining Coverage: Evidence from Linked Employer–Employee Data

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  • Nicole Guertzgen

Abstract

Using a linked employer–employee dataset, 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‐ and 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, are associated with a significantly lower responsiveness of wages to firm‐level profitability.

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  • Nicole Guertzgen, 2009. "Rent‐sharing and Collective Bargaining Coverage: Evidence from Linked Employer–Employee Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(2), pages 323-349, June.
    • Handle: RePEc:bla:scandj:v:111:y:2009:i:2:p:323-349
    DOI: 10.1111/j.1467-9442.2009.01566.x
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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