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Wage flexibility under sectoral bargaining

2022Journal article Restricted access
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dc.contributor.authorCard, David
dc.contributor.authorCardoso, Ana Rute
dc.date.accessioned2022-11-14T10:26:52Z
dc.date.available2022-11-14T10:26:52Z
dc.date.issued2022
dc.description.abstractSectoral contracts in many European countries set wage floors for different occupation groups. In addition, employers often pay a wage premium (or wage cushion) to individual workers. We use administrative data from Portugal, linked to collective bargaining agreements, to study the interactions between wage floors and wage cushions and quantify the impact of sectoral wage floors. Although wages exhibit a “spike” at the wage floor, a typical worker receives a 20% premium over the floor, with larger cushions for older- and better-educated workers and at higher-productivity firms. Cushions also allow wages to covary with firm-specific productivity, even within sectoral agreements. Contract negotiations tend to raise all wage floors proportionally, with increases that reflect average productivity growth among covered firms. As floors rise, however, cushions are compressed, leading to an average passthrough rate of about 50%. Finally, we use a series of counterfactual simulations to show that real wage reductions during the recent financial crisis arose through reductions in real wage floors, reductions in real cushions, and a re-allocation of workers to lower wage floors. Offsetting these effects was a rapid rise in education of new cohorts, which in the absence of other factors would have led to rising real wages.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.citationCard, D., Cardoso, A. R. (2022) Wage flexibility under sectoral bargaining. Journal of the European Economic Association, Vol. 20 (5), October 2022, pp. 2013–2061pt_PT
dc.identifier.doi10.1093/jeea/jvac020pt_PT
dc.identifier.issn1542-4766
dc.identifier.urihttp://hdl.handle.net/10451/55108
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.publisherWiley-Blackwellpt_PT
dc.relationCEX2019-000915-Spt_PT
dc.relationPID2019- 108144GB-100pt_PT
dc.titleWage flexibility under sectoral bargainingpt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.endPage2061pt_PT
oaire.citation.issue5pt_PT
oaire.citation.startPage2013pt_PT
oaire.citation.titleJournal of the European Economic Associationpt_PT
oaire.citation.volume20pt_PT
person.familyNameCard
person.familyNamePedro Cardoso
person.givenNameDavid
person.givenNameAna Rute
person.identifier.ciencia-id8C19-6379-2B1C
person.identifier.orcid0000-0001-6914-6698
person.identifier.orcid0000-0002-6168-8959
rcaap.rightsclosedAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublication5c0787d4-d0a1-42d5-8f2d-f443ef1802b9
relation.isAuthorOfPublication8c46e32a-f593-43b9-8031-8bdf33b7d849
relation.isAuthorOfPublication.latestForDiscovery8c46e32a-f593-43b9-8031-8bdf33b7d849

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