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Collective agreements, wages, and firms' cohorts: evidence from Central Europe

Magda, Iga, Marsden, David and Moriconi, Simone (2012) Collective agreements, wages, and firms' cohorts: evidence from Central Europe. Industrial and Labor Relations Review, 65 (3). pp. 607-629. ISSN 0019-7939

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Using a large, matched employer-employee data set, the authors investigate the impact of company and industry collective bargaining agreements on wages in the Czech Republic, Hungary, and Poland (CE3). They also examine the changing characteristics of the union wage premium in different cohorts of establishments. Their results challenge the common idea of weak unions in the CE3 by revealing a union wage premium whose characteristics depend on the level at which collective bargaining occurs. They find that industry agreements increase wages for low-skilled workers, while company agreements increase medium- and high-skilled wages. Their second finding is that the union wage premium is unevenly distributed between cohorts, with substantial cross-country variation. Wage premiums are concentrated in the transitional cohorts in the Czech Republic and Poland and, to a lesser extent, in the pre-transitional cohort in Hungary.

Item Type: Article
Official URL:
Additional Information: © 2012 Cornell University Press
Divisions: Management
Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J50 - General
Date Deposited: 15 Oct 2012 11:48
Last Modified: 16 May 2024 01:29

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