No extension without representation? Evidence from a natural experiment in collective bargaining

IZA Journal of Labor Economics

卷:9

Hijzen Alexander¹  Martins Pedro S.² 

[1] OECD and IZA, London, England;

[2] Queen Mary University of London and IZA, London, England;

关键词: industrial relations;    employer associations;    wage setting;    employment;    j52;    j58;    j21;   

DOI  :  10.2478/izajole-2020-0005

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown