Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer–Employee Data

27 Pages Posted: 29 Apr 2009

Date Written: 2008-12

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.

Suggested Citation

Guertzgen, Nicole, Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer–Employee Data (2008-12). Scandinavian Journal of Economics, Vol. 111, Issue 2, pp. 323-349, June 2009, Available at SSRN: https://ssrn.com/abstract=1396466 or http://dx.doi.org/10.1111/j.1467-9442.2009.01566.x

Nicole Guertzgen (Contact Author)

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