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The impact of centralized bargaining on spillovers and the wage structure in monopsonistic labour markets

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  • Ihsaan Bassier

Abstract

How does centralized bargaining affect the broader wage structure? And what does this tell us about the (non-)competitive dynamics of such labour markets? I study large contracted wage increases negotiated by centralized bargaining councils in South Africa, using matched employer-employee tax panel data from 2008 to 2018. First, my stacked event-study of bargaining council firms shows sharp wage increases in bargaining councils, concentrated in mid-wage and mid-size firms.

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  • Ihsaan Bassier, 2021. "The impact of centralized bargaining on spillovers and the wage structure in monopsonistic labour markets," WIDER Working Paper Series wp-2021-132, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-132
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    6. Ronak Jain & Joshua Budlender & Rocco Zizzamia & Ihsaan Bassier, 2020. "Locked down and locked out: Repurposing social assistance as emergency relief to informal workers," SALDRU Working Papers 264, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Nicole M. Fortin & Thomas Lemieux & Neil Lloyd, 2021. "Labor Market Institutions and the Distribution of Wages: The Role of Spillover Effects," Journal of Labor Economics, University of Chicago Press, vol. 39(S2), pages 369-412.
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    Cited by:

    1. Demir, Gökay, 2023. "Labor Market Frictions and Spillover Effects from Publicly Announced Sectoral Minimum Wages," IZA Discussion Papers 16204, Institute of Labor Economics (IZA).
    2. Demir, Gökay, 2022. "Labor market frictions and spillover effects from publicly announced sectoral minimum wages," Ruhr Economic Papers 985, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. South African Reserve Bank, 2023. "A. Inflation and labour markets in the wake of the pandemic," BIS Papers chapters, in: Bank for International Settlements (ed.), Inflation and labour markets, volume 127, pages 273-286, Bank for International Settlements.
    4. Kishan Shah, 2022. "Diagnosing South Africa’s High Unemployment and Low Informality," CID Working Papers 138a, Center for International Development at Harvard University.

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    Keywords

    Wages; Collective bargaining; Monopsony; Spillovers; event study; Labour market;
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