The effects of minimum bargained wages on earnings: Evidence from Spain

Dolado, Juan J.; Felgueroso, Florentino; Jimeno, Juan F.

doi:10.1016/s0014-2921(97)00003-2

Cited by 69 publications

(49 citation statements)

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“…In Portugal, for example, wages were densely concentrated around bargained minimum wages in a set of industries that represented 10% of the labor force in 1999 [3]. There is similar evidence for Spain, and in both countries earning bargained wages is most common among workers in small firms, female workers, and employees with low tenure [4].…”

Section: Benefits Of Collective Contract Extensions: Impacts On Wage mentioning

confidence: 91%

Employment and wage effects of extending collective bargaining agreements

Villanueva¹

2015

izawol

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Section: Benefits Of Collective Contract Extensions: Impacts On Wage mentioning

confidence: 91%

Employment and wage effects of extending collective bargaining agreements

Villanueva¹

2015

izawol

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“…A field less studied is the role of wage minima set in the scope of collective bargaining schemes. Dolado et al (1997) analyze the case of Spain where collectively bargained minima covered about 85% of wage earners at that time and were much more binding than the statutory national minimum. They find that the collectively bargained wages significantly reduced wage dispersion and observe wage gains between 6.21% (overall) and 12.32% (semi-skilled workers) at the cost of non-negligible employment loss.…”

Section: Previous Literaturementioning

confidence: 99%

“…The institutional design of the German MW is closely tied to the wage bargain on the sectoral level in contrast to many other countries' institutions and the MW was introduced as an additional lowest rung to the pay scale in the wage bargain. For the Spanish setting which is somewhat more akin to the German case Dolado et al (1997) attribute a 6.21% wage gain to the existence of collectively bargained sectoral MWs situated above the national statutory minimum. While the general effect of unions and/or collective agreements on wages has not been conclusively settled yet for the German case (Stephan and Gerlach, 2005;Fitzenberger et al, 2008) it remains an open question how the introduction of a lowest wage floor determined in the wage bargain that is binding for all workers in an industry affects average wages and the structure of wages overall.…”

Section: Introductionmentioning

confidence: 99%

Building the Minimum Wage: Germany's First Sectoral Minimum Wage and its Impact on Wages in the Construction Industry

Rattenhuber¹

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe very first minimum wage in Germany was introduced in 1997 for blue-collar workers in sub-sectors of the construction industry. In the setting of a natural experiment blue-collar workers in neighboring 4-digit-industries and white-collar workers are used as control groups for differences-in-differences-in-differences estimation based on linked employer-employee data. Estimation results reveal a sizable positive average impact on wages in East Germany and no effect in West Germany. Size and significance of effects are not homogeneous across wage regimes (individual vs. collective contracts) and across the distribution suggesting spillover effects to wages where the minimum is not binding.

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“…See also Goarant and Muller (2011) for evidence of NMW spillover effects on wages in France. 7 Using experimental data, Dittrich et al (2014) show that wage bargaining is an additional channel through which NMW spillover effects might arise, whereas Dolado et al (1997) provide some evidence of spillover effects of sectoral bargained minimum wages on earnings in Spain.…”

Section: Introductionmentioning

confidence: 99%

The Impact of the National Minimum Wage on Industry-Level Wage Bargaining in France

2016

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Abstract:This paper examines empirically how industry-level wage floors are set in French industrylevel wage agreements and how the national minimum wage (NMW) interacts with industrylevel wage bargaining. For this, we use a unique dataset containing about 48,000 occupationspecific wage floors, in more than 340 French industries over the period [2006][2007][2008][2009][2010][2011][2012][2013][2014]. We find that the NMW has a significant impact on the seasonality and on the timing of the wage bargaining process. Inflation, past sectoral wage increases and real NMW increases are the main drivers of wage floor adjustments; elasticities of wage floors with respect to these macro variables are 0.6, 0.3 and 0.25 respectively. Wage floor elasticities to inflation and to the NMW both decrease along the wage floor distribution but are still positive for all levels of wage floors.Keywords: minimum wage, collective bargaining, wages. For that purpose, we collect a large and unique new data set containing all industry-specific scales of wage floors for more than 340 French industries (covering more than 90% of workers of the private sector) over the period 2006-2014. In each industry, wage floors are defined for a specific classification of representative occupations and are used by firms as a reference to set their wages. In our data set, we are able to compute the size of wage floor adjustments between two wage agreements for each occupation. Overall, our data set contains more than 48,000 wage floors for more than 6,000 different occupations defined in industry agreements.Our paper provides new stylized facts on how wage floors are adjusted in France. We first find that the frequency of wage floor adjustments is highly time-and duration-dependent: industrylevel wage agreements are much more frequent during the first quarter of the year, and the usual duration between two wage agreement signing (and so, between two wage floor adjustments) is one year. The frequency of wage floor adjustments is also positively affected by variations of macro variables such as inflation and the growth rate of aggregate wages. Concerning the size of wage floor adjustments, we provide evidence that past inflation plays a key role in 4 explaining the size of wage adjustments. Industry-specific shocks contribute to wage floor increases as long as NMW or inflation increases are not binding.Our second contribution is to investigate the interactions between NMW adjustments and the setting of industry-level wage floors. In France, one important channel of transmission of NMW increases to other wages may come from industry-level wage agreements. To assess the impact of the NMW increases on wage floors, we rely on a Tobit model to disentangle the simultaneous effects of NMW increases on the frequency of wage agreements and on the size of wage floor adjustments. Using changes in the macro variables since the last wage agreement in a given industry, we are able to construct industry-specific variables and to better identify their effects on wage floor...

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The effects of minimum bargained wages on earnings: Evidence from Spain

Cited by 69 publications

References 3 publications

Employment and wage effects of extending collective bargaining agreements

Employment and wage effects of extending collective bargaining agreements

Building the Minimum Wage: Germany's First Sectoral Minimum Wage and its Impact on Wages in the Construction Industry

The Impact of the National Minimum Wage on Industry-Level Wage Bargaining in France

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