■ We use a harmonized matched employer-employee dataset to study the impact of the collective bargaining regime on wages in the manufacturing sector in three countries with a multi-level system of bargaining: Belgium, Denmark and Spain. Single-employer bargaining has a positive effect both on wage levels and on wage dispersion in Belgium and in Denmark. In Spain, it also increases wage levels but reduces wage dispersion. Our interpretation is that in Belgium and Denmark, single-employer bargaining is used to adapt pay to the specific needs of the firm while, in Spain it is mainly used by trade unions in order to compress the wage distribution.

Establishment-size, Wages, Europe, J31,

Economic theory advances a number of reasons for the existence of a wage gap between part-time and full-time workers. Empirical work has concentrated on the wage effects of parttime work for women. For men, much less empirical evidence exists, mainly because of lacking data. In this paper, we take advantage of access to unique harmonised matched employer-employee data (i.e. the 1995 European Structure of Earnings Survey) to investigate the magnitude and sources of the part-time wage penalty for male workers in six European countries (i.e. Belgium, Denmark, Ireland, Italy, Spain, and the UK). Findings show that the raw gap in hourly gross pay amounts to 16 per cent of male part-timer's wage in Spain, to 24 per cent in Belgium, to 28 per cent in Denmark and Italy, to 67 per cent in the UK and to 149 per cent in Ireland. Human capital differences explain between 31 per cent of the observed wage gap in the UK and 71 per cent in Denmark. When a larger set of control variables is taken into account (including occupation, industry, firm size, and level of wage bargaining), a much smaller part of the gap remains unexplained by differences in observed characteristics (except in Italy). Overall, results suggest that policy initiatives to promote lifelong learning and training are of great importance to help part-timers catch up. Moreover, except for Italy, they point to a persisting problem of occupational and sectoral segregation between men working part-time and full-time which requires renewed policy attention. JEL Classification:C13, C31, J24, J31, J71

Cet article analyse la relation entre la dispersion salariale intra-firme et la performance au sein de grandes entreprises belges à partir de données appareillées employeur-employé. Sur base de la méthodologie de Winter-Ebmer et Zweimüller (1999), nous trouvons une relation positive et significative entre la dispersion salariale au sein des entreprises et les profits par tête. Ce résultat est obtenu en contrôlant pour les caractéristiques des travailleurs et des entreprises ainsi qu'en abordant le problème potentiel de la simultanéité. Nos estimations indiquent également que l'intensité de la relation est plus forte pour les ouvriers ainsi qu'au sein des entreprises avec un degréélevé de monitoring. Ces résultats correspondent davantage à la théorie des 'tournois' qu'aux modèles de 'coopération'. Copyright WWZ and Helbing & Lichtenhahn Verlag AG 2004.

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. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. (2004) methodology. However, the contribution of this explanation to the observed industry wage differentials appears to be limited. Further results show that ceteris paribus, workers earn significantly higher wages when employed in more profitable firms. Our instrumented wage-profit elasticity stands at 0.063 and Lester's range of pay is about 41 per cent of the mean wage. This rent-sharing phenomenon accounts for a large fraction of the industry wage differentials. We find indeed that the magnitude, dispersion and significance of industry wage differentials decreases sharply when controlling for profits.JEL Classification: D31, J31, J41

This article examines how professional female tennis players react to (a) prize incentives and (b) heterogeneity in ex ante players' abilities. It is found that a larger prize spread encourages women to increase effort, even when controlling for many tournament and player characteristics. Further results indicate that uneven contests lead favorites to win more games and underdogs to be less performing. They also show that the performance differential among players increases with the ranking differential. These findings suggest that the outcome of a match is more linked to players' abilities than to players' incentives to adjust effort according to success chances.In traditional business activities, many organizations use payment schemes based on relative or rank performance to foster the average worker's effort. One may argue that, in the sports industry, the organizers of competitions must also set up a structure of prizes that maximizes the performance of players (Szymanski, 2003). Indeed, if players put forth more effort, the competition is more attractive. The crowd, the media, and the sponsors are more interested in the competition, which in turn increases the income of the organizer. In other words, as managers of firms AUTHORS' NOTE: The authors would like to thank two anonymous referees for many useful comments and suggestions on an earlier version of this article. We are also most grateful to Tor Eriksson, Maria Jepsen, and Benoît Mahy for helpful advice. Any remaining errors are those of the authors.

Purpose -This paper analyses the magnitude and sources of the firm-size wage premium in the Belgian private sector. Design/methodology/approach -Using a unique matched employer-employee data set, our empirical strategy is based on the estimation of a standard Mincer wage equation. We regress individual gross hourly wages (including bonuses) on the log of firm-size and insert step by step control variables in order to test the validity of various theoretical explanations. Findings -Results show the existence of a significant and positive firm-size wage premium, even when controlling for many individual characteristics and working conditions. A substantial part of this wage premium derives from the sectoral affiliation of the firms. It is also partly due to the higher productivity and stability of the workforce in large firms. Yet, findings do not support the hypothesis that large firms match high skilled workers together. Finally, results indicate that the elasticity between wages and firm-size is significantly larger for white-collar workers and comparable in the manufacturing and the service sectors. Research limitation/implications -Unfortunately, we are not able to control for the potential non-random sorting process of workers across firms of different sizes. Originality/value -This paper is one of the few to test the empirical validity of recent hypotheses (e.g. productivity, job stability and matching of high skilled workers). It is also the first to analyse the firm-size wage premium in the Belgian private sector.

The objective of this paper is twofold. First, we analyse the structure of wages within and between Belgian firms. Next, we examine how the productivity of these firms is influenced by their internal wage dispersion. To do so, we use a large matched employer-employee data set (i.e., a combination of the 1995 'Structure of Earnings' and 'Structure of Business' Surveys). On the basis of the methodology developed by Winter-Ebmer and Zweimuller (1999), we find that within-firm wage dispersion has a positive and significant effect on firm productivity. This result is robust to controls for individual and firm characteristics as well as to instrumenting the wage inequality variable. Findings also suggest that the intensity of this effect is stronger within firms with: i) a majority of blue-collar workers, and ii) a high degree of monitoring. These results are more in line with the 'tournament' models than with the 'fairness, morale and cohesiveness' models.