The employment effects of collective wage bargaining

Fanfani, Bernardo

doi:10.1016/j.jpubeco.2023.105006

“…The fact that the coefficient associated with the CPI is greater than 1 in our model implies that nominal contractual wages have grown faster than inflation period of our study. This is a finding also documented by Fanfani (2022). The period of our study has been characterized by a generally flat growth of prices, while wage negotiations in most collective contracts have set a quite steady pace of growth at around 2 per cent per year.…”

supporting

confidence: 86%

“…In Italy, each collective contract sets several wage floors that have to be applied for different occupations within sectors. As shown by Fanfani (2022), in the recent years, contractual wages have followed very similar dynamics within each collective agreement for different occupations. Therefore, the average level of contractual wages of a collective agreement can be considered a good approximation of the growth rate followed by all occupation‐specific minimum wages within the same contract.…”

Section: Regression Analysismentioning

confidence: 99%

See 1 more Smart Citation

Employer associations in Italy: Trends and economic outcomes

Fanfani

¹

,

Lucifora

²

,

Vigani

³

2023

Brit J Industrial Rel

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3

0

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This study analyses the representativeness of employer associations in Italy, using unique firm‐level data with information on employers' affiliation and their characteristics. We document that a persistent decline in affiliation rates to employers' associations has occurred during the last two decades. We show that affiliated companies are positively selected, as they tend to be larger, older, more likely to be located in richer regions, to be export and innovation oriented, and more likely to provide training. Using longitudinal data and regression decomposition techniques, we show that larger firms have been more affected by the decline in affiliation rates over time. Finally, we show that the level of representativeness of employers' associations has a weak positive effect on collective bargaining occupational wage minima settled by these organizations in national industry‐wide collective contracts after a negotiation process with trade unions.

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Staggered contracts and unemployment during recessions

Adamopoulou,

Díez-Catalán,

Villanueva

2024

Documentos De Trabajo

1

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This paper studies the impact of downward wage rigidity on wage and employment dynamics after the outbreak of major recessions in Spain. Downward wage rigidity stems from collective agreements, which set province-sector-skill-specific minimum wage floors for all workers. By exploiting variation in the renewal of collective agreements, we find that those signed before the onset of recessions settle on higher nominal negotiated wage growth than agreements signed afterwards. Leveraging social security data and the distribution of the worker-level bite of minimum wage floors, we document that the negotiated wage rigidity translated into higher wage growth mainly among workers with near-floor wages. Consequently, these workers experienced a substantial and highly persistent increase in the probability of non-employment, but only if they were covered by long-duration collective agreements. Our findings highlight the interplay between rigidity at different parts of the wage distribution and labor market institutions and identify conditions under which collective contract staggering and the inability to renegotiate may amplify aggregate shocks.

show abstract

Staggered contracts and unemployment during recessions

Adamopoulou,

Díez-Catalán,

Villanueva

2024

Documentos De Trabajo

0

View full text Add to dashboard Cite

This paper studies the impact of downward wage rigidity on wage and employment dynamics after the outbreak of major recessions in Spain. Downward wage rigidity stems from collective agreements, which set province-sector-skill-specific minimum wage floors for all workers. By exploiting variation in the renewal of collective agreements, we find that those signed before the onset of recessions settle on higher nominal negotiated wage growth than agreements signed afterwards. Leveraging social security data and the distribution of the worker-level bite of minimum wage floors, we document that the negotiated wage rigidity translated into higher wage growth mainly among workers with near-floor wages. Consequently, these workers experienced a substantial and highly persistent increase in the probability of non-employment, but only if they were covered by long-duration collective agreements. Our findings highlight the interplay between rigidity at different parts of the wage distribution and labor market institutions and identify conditions under which collective contract staggering and the inability to renegotiate may amplify aggregate shocks.

show abstract

The employment effects of collective wage bargaining

Cited by 3 publications

References 78 publications

Employer associations in Italy: Trends and economic outcomes

Employer associations in Italy: Trends and economic outcomes

Staggered contracts and unemployment during recessions

Staggered contracts and unemployment during recessions

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