English, Article, Journal or magazine article edition: The effect of firm-level contracts on the structure of wages: evidence from matched .. David Card; Sara de la Rica

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Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The effect of firm-level contracts on the structure of wages: evidence from matched ..
Author
  • David Card
  • Sara de la Rica
Physical Description
  • preprint
Notes
  • In Spain, as in several other European countries, sectoral bargaining agreements are automatically extended to cover all firms in an industry. Employers and employees can also negotiate firm-specific contracts. We use a large matched employer-employee data set to study the effects of firm-level contracting on the structure of wages. We estimate conventional wage determination models and a richer set of models that control for the characteristics of coworkers and the probability the workplace is covered by a firm-level contract. Our estimates suggest that firm-level contracting is associated with a 5-10 percent wage premium, with larger premiums for more highly paid workers. Although we cannot decisively test between alternative explanations for the firm-level contracting premium, workers with firm-specific contracts have significantly longer job tenure, suggesting that the premium is at least partially a noncompetitive phenomenon.
  • RePEc:ehu:dfaeii:200406
Language
  • English
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