Working Paper: CEPR ID: DP1706
Authors: Joop Hartog; Edwin Leuven; Coen Teulings
Abstract: In a corporatist country like the Netherlands, wages should not be distinguished by union membership status, but by bargaining regime. Acknowledging only the firms? bargaining regime, we find small differences between four regimes and certainly no distinction between ?covered? and ?uncovered? firms. Distinguishing ? within covered firms ? between workers covered and uncovered by collective bargaining, including a model with partially unobserved sector selection, we find somewhat larger bargaining regime effects, and sometimes substantial coverage effects. Estimation of the latter, is seriously troubled by unobserved heterogeneity, however.
Keywords: wages; bargaining regime
JEL Codes: J3; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| bargaining regime (C78) | wages (J31) |
| mandatory extension regime (F33) | wages (J31) |
| individual coverage by collective bargaining (J50) | wages (J31) |
| company bargaining regime (J52) | wages (J31) |
| industry bargaining regime (J52) | wages (J31) |