Organized Labor, Labor Market Imperfections, and Employer Wage Premia
Bibliographic Data
| ID | 3303451 |
|---|---|
| Authors | Sabien Dobbelaere (0000-0001-9521-4893), Bertrand Hirsch (0000-0002-6328-4931), Steffen Mueller (0000-0003-4889-3058), Georg Neuschaeffer (0000-0002-8119-2360, Halle Institute for Economic Research) |
| Year | 2024 |
| Volume | 77 |
| Issue | 3 |
| Pages | 396-427 |
| Publication date | 2024-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/00197939241237757 |
| OpenAlex | W4392816665 |
| Language | EN |
| Citations received | 1 |
| References cited | 49 |
This article examines how collective bargaining through unions and workplace codetermination through works councils relate to labor market imperfections and how labor market imperfections relate to employer wage premia. Based on representative German plant data for the years 1999-2016, the authors document that 70% of employers pay wages below the marginal revenue product of labor and 30% pay wages above that level. Findings further show that the prevalence of wage markdowns is significantly smaller when organized labor is present, and that the ratio of wages to the marginal revenue product of labor is significantly larger. Finally, the authors document a close link between labor market imperfections and mean employer wage premia, that is, wage differences between employers corrected for worker sorting
Collective bargaining · Economics · Efficiency wage · German · Incentive · Labour economics · Marginal product · Marginal product of labor · Marginal revenue · Market economy · Microeconomics · Product (mathematics · Product market · Production (economics · Revenue · Wage · Wage bargaining · Employment and Welfare Studies · Finance · Labor Movements and Unions · Taxation and Compliance Studies
Unions and Inequality over the Twentieth Century
Wage Differentials, Employer Size, and Unemployment
Identification Properties of Recent Production Function Estimators
Firms and Labor Market Inequality
Prices, Markups, and Trade Reform
High Wage Workers and High Wage Firms
Random Simultaneous Equations and the Theory of Production
The Empirics of Firm Heterogeneity and International Trade
Markups and Firm-Level Export Status
GMM Estimation with persistent panel data
Estimating Production Functions Using Inputs to Control for Unobservables
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Monopsony in Labor Markets
Union Density and Varieties of Coverage
Trade, FDI, and the Organization of Firms
What Does Codetermination Do
Firms in International Trade
Macroeconomics and Market Power
Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany
German Works Councils and the Anatomy of Wages
Monopsony in Labor Markets
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |