Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298386 
Year of Publication: 
2020
Citation: 
[Journal:] IZA Journal of Labor Economics [ISSN:] 2193-8997 [Volume:] 9 [Issue:] 5 [Year:] 2020 [Pages:] 1-31
Publisher: 
Sciendo, Warsaw
Abstract: 
In many countries, collective bargaining coverage is enhanced by government-issued extensions that widen the reach of collective agreements beyond their signatory parties to all firms and workers in the sector. This paper analyzes the causal impact of extensions using a natural experiment in Portugal that resulted in a sharp and unanticipated decline in the extension probability of agreements. Our results, based on a regression discontinuity design, indicate that extensions had a negative impact on employment growth. This effect is concentrated among nonaffiliated firms, which may reflect the limited representativeness of employer associations.
Subjects: 
industrial relations
employer associations
wage setting
employment
JEL: 
J52
J58
J21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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