Using a large, matched employer-employee data set, the authors investigate the impact of company and industry collective bargaining agreements on wages in the Czech Republic, Hungary, and Poland (CE3). They also examine the changing characteristics of the union wage premium in different cohorts of establishments. Their results challenge the common idea of weak unions in the CE3 by revealing a union wage premium whose characteristics depend on the level at which collective bargaining occurs. They find that industry agreements increase wages for low-skilled workers, while company agreements increase medium-and high-skilled wages. Their second finding is that the union wage premium is unevenly distributed between cohorts, with substantial cross-country variation. Wage premiums are concentrated in the transitional cohorts in the Czech Republic and Poland and, to a lesser extent, in the pre-transitional cohort in Hungary.

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Using a unique harmonized linked employer-employee dataset, this paper analyses the structure and determinants of inter-industry wage differentials in Central and Eastern European countries (Czech Republic, Latvia, Lithuania and Poland) and compares them to those observed in Western European states. Findings show substantial differences in earnings across sectors in all countries, even when controlling for a wide range of employee, job and employer characteristics. The hierarchy of sectors in terms of wages appears to be quite similar in Eastern and Western European countries, although the former tend to have higher levels of dispersion of inter-industry wage differentials.