Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260680 
Year of Publication: 
2022
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Article No.:] 136v2 [Publisher:] Institute of Labor Economics (IZA) [Place:] Bonn [Year:] 2022
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In many countries, the wage floors and working conditions set in collective contracts negotiated by a subset of employers and unions are subsequently extended to all employees in an industry. Those extensions ensure common working conditions within the industry, mitigate wage inequality, and reduce gender wage gaps. However, little is known about the so-called bite of collective contracts and whether they limit wage adjustments for all workers. Evidence suggests that collective contract benefits come at the cost of reduced employment levels, though typically only for workers earning close to the wage floors.
Subjects: 
bite of collective contracts
wage inequality
employment losses
JEL: 
J23
J31
E24
Persistent Identifier of the first edition: 
Document Type: 
Article

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