Ifo Working Papers

The Ifo Working Papers, initiated in 2005, contain discussion contributions, mostly in English, from the current research of the Ifo Institute and the Center for Economic Studies. They present research results for suggestions and further revisions before they are submitted to refereed journals.

All submissions are subject to the approval of the Review Board. (Guide for authors, PDF | Sample first page, PDF)
The working papers are available as PDF files.

Recent number:

Felbermayr, Gabriel J. / Hauptmann, Andreas / Schmerer, Hans-J�rg

International Trade and Collective Bargaining Outcomes: Evidence from German Employer-Employee Data

In theoretical trade models with variable markups and collective wage bargaining, export exposure may reduce the exporter wage premium. We test this prediction using linked German employer-employee data from 1996 to 2007. To separate the rent-sharing mechanism from assortative matching, we exploit individual worker information to construct profitability measures that are free of skill composition. We find that rentsharing is less pronounced in more export intensive firms or in more open industries. The exporter wage premium is highest for low productivity firms. In line with theory, these findings are unique to the subsample of plants covered by collective bargaining.

14 S.

Ifo Working Paper No. 130

Publisher: ifo Institut, M�nchen 2012

Keywords

Trade, collective bargaining, employer-employee data

JEL Classification

[E240]		Macroeconomics : Consumption, Saving, Production, Employment, and Investment : Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
[F160]		Trade : Trade and Labor Market Interactions
[J300]		Wages, Compensation, and Labor Costs : General
[J510]		Labor�Management Relations, Trade Unions, and Collective Bargaining : Trade Unions : Objectives, Structure, and Effects

Language of publication English

Article number 12022012130000

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