Uncovered workers in plants covered by collective bargaining: Who are they and how do they fare?
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Uncovered workers in plants covered by collective bargaining : Who are they and how do they fare? / Hirsch, Boris; Lentge, Philipp; Schnabel, Claus.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2022. (University of Lüneburg Working Paper Series in Economics; No. 408).Research output: Working paper › Working papers
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TY - UNPB
T1 - Uncovered workers in plants covered by collective bargaining
T2 - Who are they and how do they fare?
AU - Hirsch, Boris
AU - Lentge, Philipp
AU - Schnabel, Claus
PY - 2022/2/1
Y1 - 2022/2/1
N2 - In Germany, employers used to pay union members and non-members in a plant thesame union wage in order to prevent workers from joining unions. Using recent administrative data, we investigate which workers in firms covered by collective bargaining agreements still individually benefit from these union agreements, which workers are not covered anymore, and what this means for their wages. We show that about 9 percent of workers in plants with collective agreements do not enjoy individual coverage (and thus the union wage) anymore.Econometric analyses with unconditional quantile regressions and firm-fixed-effectsestimations demonstrate that not being individually covered by a collective agreement has serious wage implications for most workers. Low-wage non-union workers and those at low hierarchy levels particularly suffer since employers abstain from extending union wages to them in order to pay lower wages. This jeopardizes unions’ goal of protecting all disadvantaged workers.
AB - In Germany, employers used to pay union members and non-members in a plant thesame union wage in order to prevent workers from joining unions. Using recent administrative data, we investigate which workers in firms covered by collective bargaining agreements still individually benefit from these union agreements, which workers are not covered anymore, and what this means for their wages. We show that about 9 percent of workers in plants with collective agreements do not enjoy individual coverage (and thus the union wage) anymore.Econometric analyses with unconditional quantile regressions and firm-fixed-effectsestimations demonstrate that not being individually covered by a collective agreement has serious wage implications for most workers. Low-wage non-union workers and those at low hierarchy levels particularly suffer since employers abstain from extending union wages to them in order to pay lower wages. This jeopardizes unions’ goal of protecting all disadvantaged workers.
KW - Economics
KW - collective bargaining
KW - zbuib wage
KW - uncovered workers
KW - Germany
M3 - Working papers
T3 - University of Lüneburg Working Paper Series in Economics
BT - Uncovered workers in plants covered by collective bargaining
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -