How does Collective Bargaining Affect the Gender Pay Gap?

Elvira, Marta M.; Saporta, Ishak

doi:10.1177/0730888401028004005

“…Perhaps one of the most important factors influencing wage determination within firms is whether wages are subject to collective bargaining or not (Elvira and Saporta 2001). This insight is particularly true for Germany, where unions still play an important role in the wage setting process.…”

Section: Theoretical Backgroundmentioning

confidence: 97%

“…Cornfield (1987) points out that in the case of layoffs bureaucratic rules consequently reduce the potential of discrimination. Elvira and Saporta (2001) apply the same logic to the wage setting process. They argue that the management of unionized firms are more likely to adhere to such bureaucratic wage setting rules, reducing the arbitrariness in wage rates and generating more predictable wages for male and female employees.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…The last column includes a quotient between the mean of the coefficients and the corresponding standard deviation as absolute values. Source: own calculation; LIAB-Data 1997-2001 Column 1 describes the number of estimated coefficients for each characteristic. Note that some characteristics are missing in some firms, such that specific coefficients can not be determined in every firm.…”

Section: First Estimation Step: Wage Regressionmentioning

confidence: 99%

“…** significant on 5%-level, * significant on 10%-level. Source: own calculation; LIAB-Data 1997, 1999and 2001 …”

mentioning

confidence: 99%

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Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions

Heinze

¹

,

Wolf²

2006

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Die Discussion Papers dienen einer möglichst schnellen Verbreitung von neueren Forschungsarbeiten des ZEW. Die Beiträge liegen in alleiniger Verantwortung der Autoren und stellen nicht notwendigerweise die Meinung des ZEW dar.Discussion Papers are intended to make results of ZEW research promptly available to other economists in order to encourage discussion and suggestions for revisions. The authors are solely responsible for the contents which do not necessarily represent the opinion of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp06020.pdf Gender Earnings Gap in German Firms AbstractMost existing analyses on the gender wage gap (GWG) have neglected the establishment as a place where inequality between male and female employees arises and is maintained. The use of linked employee-employer data permits us to move beyond the individual and consider the importance of the workplace to explain gender pay differentials. That is, we first provide a comprehensive study on the effects of various firm characteristics and the institutional framework on the GWG in Germany. The innovation of our research is that we do not just compare average male and female wages (of specific groups of employees), but look at within-firm gender wage differentials. Our results indicate that the mean GWG within firms is smaller than the average overall GWG. Furthermore, we can show that firms with formalized co-determination (works council) and those covered by collective wage agreements are more likely to have smaller GWG. It is also interesting to note that the wage differential between men and women decreases with firm size and increases with the wage level. JEL Classification: J16 and J31Keywords: gender wage gap; unions, works councils, discrimination, within-firms wage differentials. Non-technical summaryMost studies analyze gender pay differentials by focusing primarily on differences in the wage-determining characteristics of men and women and how these characteristics are rewarded. The goal of our research is to move beyond the individual and consider the importance of the workplace to explain gender pay differentials. The innovation of our research approach is that we do not just compare average male and female wages (of specific groups of employees), but look at within-firm gender wage differentials. In the following study, we will focus on the impact of works council and the collective bargaining coverage.An attempt to explain the wage differences between men and women would not be comprehensive and convincing, if Becker's theory on discrimination were not considered at all. We hence propose alternative concepts to test the hypotheses derived from the discrimination model. The empirical analysis is based on the German LIAB data, a representative linked employer-employee panel including information on all employees of firms covered by the IAB establishment survey.To investigate the theoretical hypotheses regarding the effect of firm and institutional characteristics on wage i...

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“…The negative union effect may be explained by the reduced wage dispersion among employees covered by the same collective bargaining agreement (see e.g. Freeman andMedoff 1984, Fitzenberger andKohn 2005) and the reduced arbitrariness in the wage setting process (Elvira and Saporta 2001). Also international evidence hint at limited wage dispersion in those countries with centralized collective bargaining, which is -to a great part -caused by a more compressed inter-firm wage dispersion (Blau and Kahn 1999.…”

mentioning

confidence: 99%

How to Limit Discrimination? Analyzing the Effects of Innovative Workplace Practices on Intra-Firm Gender Wage Gaps Using Linked Employer-Employee Data

Wolf

¹

,

Heinze

²

2007

SSRN Journal

2

0

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp07077.pdf How to Limit Discrimination?Analyzing AbstractThis paper provides a new approach to assess the impact of organisational changes fostering employee involvement, performance related pay schemes and other relevant trends in personnel policy on the gender wage gap. Our results indicate that innovative human resource practices tend to limit the wage differential between men and women. The innovation of this study is that we use linked employer-employee data to look at within-firm gender wage differentials. To investigate the theoretical hypotheses regarding the effect of selected human resource measures on gender wage inequality, we calculate a firm-specific gender wage gap accounting for differences in individual characteristics.JEL Classification: J16 and J31

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Selecting Social Partners: Collective Bargaining for Gender Equality in the Shadow of Political Polarisation and Ideology in Turkey

Taşkın

¹

,

Çakın

²

2021

Social Partners and Gender Equality

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How does Collective Bargaining Affect the Gender Pay Gap?

Cited by 52 publications

References 44 publications

Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions

Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions

How to Limit Discrimination? Analyzing the Effects of Innovative Workplace Practices on Intra-Firm Gender Wage Gaps Using Linked Employer-Employee Data

Selecting Social Partners: Collective Bargaining for Gender Equality in the Shadow of Political Polarisation and Ideology in Turkey

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