Indicative and Updated Estimates of the Collective Bargaining Premium in Germany

Addison, J.; Teixeira, P.; Evers, K.; Bellmann, L.

doi:10.1111/irel.12049

Indicative and Updated Estimates of the Collective Bargaining Premium in Germany

Addison, J.; Teixeira, P.; Evers, K.; Bellmann, L.

Authors

Professor John Addison john.addison@durham.ac.uk
Professor

P. Teixeira

K. Evers

L. Bellmann

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.

Citation

Addison, J., Teixeira, P., Evers, K., & Bellmann, L. (2014). Indicative and Updated Estimates of the Collective Bargaining Premium in Germany. Industrial Relations, 53(1), 125-156. https://doi.org/10.1111/irel.12049

Journal Article Type	Article
Acceptance Date	Dec 17, 2013
Online Publication Date	Dec 17, 2013
Publication Date	Jan 1, 2014
Deposit Date	Sep 19, 2013
Publicly Available Date	May 23, 2014
Journal	Industrial Relations
Print ISSN	0019-8676
Electronic ISSN	1468-232X
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	53
Issue	1
Pages	125-156
DOI	https://doi.org/10.1111/irel.12049
Keywords	Average wages, Union contract premium, Collective bargaining transitions, Difference-in-differences, Matching, Germany.
Public URL	https://durham-repository.worktribe.com/output/1449699

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Copyright Statement
This is the peer reviewed version of the following article: Addison, J., Teixeira, P., Evers, K. and Bellmann, L. (2014), Indicative and Updated Estimates of the Collective Bargaining Premium in Germany. Industrial Relations: A Journal of Economy and Society, 53 (1): 125–156, which has been published in final form at http://dx.doi.org/10.1111/irel.12049. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.