Wage Differentials by Bargaining Regime in Spain (2002–2014). An Analysis Using Matched Employer-Employee Data

Abstract

This research examines wage differentials associated to different collective bargaining regimes in Spain and their evolution over time based on matched employeremployee microdata. The primary objective is to analyse the wage differentials associated to the presence of a firm-level agreement and how they have evolved, taking into account the changes in the economic cycle and the recent labour reform of 2012. The second objective of the study is to examine the impact on wages of an absence of a collective agreement. This regime has become more prevalent due to the regulatory changes associated to the labour reform. From the evidence obtained it may be concluded that, although the higher wages observed in company-level agreements are systematically explained by the better characteristics of firms with labour agreements, there is a positive wage premium that favours workers mostly in the middle and upper-middle end of the wage distribution. This premium has remained relatively stable over time and does not seem to have been affected by the reform, although a degree of cyclical evolution cannot be ruled out. With respect to the impact on wages of the absence of a collective agreement, the results suggest that this level of bargaining, which is still fairly scarce, despite displaying an increasing trend, is associated, on average, to comparatively low wages, and, consequently, to higher wage flexibility. The principal explanatory cause for this wage differential is the existence of a negative wage premium for workers of firms covered by sectoral agreements, particularly those at the lower end of the distribution.

Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality

“…In other words, such firms compete more intensively for skilled workers, which strengthens the workers' bargaining position. Indeed, the bargaining position of low-skilled workers has tended to weaken as they tend to be most exposed to the threat of automation, the decentralisation of collective bargaining, weaker employment protection or reduced generosity of unemployment benefits (Alvarez, Benguria, Engbom, & Moser, 2018;Coudin, Maillard, & To, 2018;Guertzgen, 2009;Ramos, Sanromá, & Simón, 2018).…”

Workforce composition, productivity and pay: the role of firms in wage inequality

“…As part of this project, this paper provides a conceptual framework and a descriptive analysis of the role of firms in wage inequality drawing on a new dataset of linked employer-employee data across 14 OECD countries from the early 1990s to around 2013-18. 3 Based on these findings, the paper raises a number of hypotheses on the structural and policy drivers of betweenfirm wage inequality that will be empirically tested in the next stage of the project.…”