Wage determination and the bite of collective contracts in Italy and Spain

Adamopoulou, Effrosyni; Villanueva, Ernesto

doi:10.1016/j.labeco.2022.102147

Cited by 12 publications

(5 citation statements)

References 55 publications

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“…Particularly compelling evidence can be drawn from the experience in Wisconsin, in the US, where the replacement of collective bargaining for teachers by a flexible pay system that required individual bargaining led to a widening of the gender wage gap. The main reason is that female Portugal (1999) [4] Portugal (2010-2016) [3] Italy (2007-2016) [2] Spain (2007-2013) [2] Metalworking industry EFFROSYNI ADAMOPOULOU AND ERNESTO VILLANUEVA | Employment and wage effects of extending collective bargaining agreements teachers, especially those who are young and with few years of experience, are less likely to negotiate overpay than males [9]. Similar evidence is available in the Netherlands and in Spain.…”

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

confidence: 87%

“…In Portugal, for example, the wages of females, youths, and of low-skilled workers are concentrated around negotiated minimum wages [3], [4]. There is similar evidence for the Italian and Spanish metalworking sectors; in both countries, workers in small firms and employees with low tenure are more likely to earn wages close to the negotiated minima [2].…”

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

confidence: 88%

“…A first issue to consider is whether and to what extent wage floors are binding. Studies that link worker-level information from Social Security records to wage floors negotiated in extended collective contracts find only a limited degree of non-compliance [2], [3], [4], suggesting that those negotiated wage floors are effective minimum wages. A challenge to that view comes from the use of survey data in Italy or Spain, where some studies report high levels of non-compliance ranging between 8% and 29% [5], [6].…”

Section: Discussion Of Pros and Cons The Bite Of Collective Contracts...mentioning

confidence: 99%

“…Income stability-even if it benefits only job stayers-is especially valuable during a recession. Still, this insurance is only partial, as most workers earn well above the minimum wage floors, and their cushion gets compressed during recessions [2], [3], [7].…”

Section: Comparing Pros and Cons: The Responsiveness Of Employment Gr...mentioning

confidence: 99%

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Employment and wage effects of extending collective bargaining agreements

Villanueva¹,

Adamopoulou²

2022

izawol

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The overall impact of extending a collective contract to all firms in an industry depends on how much employment is lost due to the contract's provisions on minimum wages and other working conditions. Assessing the impact of collective contract extensions on wages and employment outcomes requires linking information on collective contracts registers to longitudinal data on employers and employees. New evidence based on such data sheds light on the socalled bite of negotiated minimum wage floors and shows that wage and employment responses are mostly confined to workers with earnings close to the minima. Policy mechanisms such as representation requirements and "opt-out" clauses may alleviate these concerns in some settings. ELEVATOR PITCHIn many countries, the wage floors and working conditions set in collective contracts negotiated by a subset of employers and unions are subsequently extended to all employees in an industry. Those extensions ensure common working conditions within the industry, mitigate wage inequality, and reduce gender wage gaps. However, little is known about the so-called bite of collective contracts and whether they limit wage adjustments for all workers. Evidence suggests that collective contract benefits come at the cost of reduced employment levels, though typically only for workers earning close to the wage floors.

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

confidence: 87%

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

confidence: 88%

Section: Discussion Of Pros and Cons The Bite Of Collective Contracts...mentioning

confidence: 99%

Section: Comparing Pros and Cons: The Responsiveness Of Employment Gr...mentioning

confidence: 99%

See 2 more Smart Citations

Employment and wage effects of extending collective bargaining agreements

Villanueva¹,

Adamopoulou²

2022

izawol

Self Cite

View full text Add to dashboard Cite

show abstract

“…There is also an important literature on collective bargaining laws and teacher pay, union membership, and student achievement, including Marianno & Strunk (2018), Willen (2021), Biasi & Sarsons (2021), and Han (n.d.). Finally, we also contribute to the emerging literature on the micro analysis of collective agreements and their effects, including Card & Cardoso (2022), Gautier et al (2022), and Adamopoulou & Villanueva (2022.…”

Section: Introductionmentioning

confidence: 99%

The Wage Effects of Employers' Associations: A Case Study of the Private Schools Sector

Martins

2023

SSRN Journal

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Enhancing synergistic performance through implicit incentive contracts: Addressing the “talent dilemma” in the public sector

Guo,

Du,

et al. 2024

Manage Decis Econ

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Because of the conflict between the traditional public sector values of egalitarianism and new public management, talent management (TM) in the public sector is more difficult to implement under resource constraints. Equity and efficiency in China's public sector are squeezed out of each other under egalitarianism, resulting in the “ talent dilemma” in which talent works more but does not get more. The “talent dilemma” leads to the fact that it is very attractive for talents to hide their abilities and reduce their efforts in the public sector. In this paper, from the perspective of the “talent dilemma”, we study the contract design problem of the coexistence of heterogeneous talent's adverse selection and moral hazard in the public sector. Specifically, an incentive model combining exclusive and inclusive TM factors under information asymmetry is constructed. The optimal incentive contract is designed to motivate heterogeneous talents to display true information about their abilities and to maintain a maximized level of effort. The results of the study show that the optimal incentive contract can realize the role of information screening and break the “talent dilemma”. These findings provide a theoretical basis for the reform of incentive mechanisms in the public sector.

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Wage determination and the bite of collective contracts in Italy and Spain

Cited by 12 publications

References 55 publications

Employment and wage effects of extending collective bargaining agreements

Employment and wage effects of extending collective bargaining agreements

The Wage Effects of Employers' Associations: A Case Study of the Private Schools Sector

Enhancing synergistic performance through implicit incentive contracts: Addressing the “talent dilemma” in the public sector

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