1. The effect of private versus public ownership on labour earnings
- Author
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Odd Rune Straume, Paulo Bastos, Natália P. Monteiro, and Universidade do Minho
- Subjects
Economics and Econometrics ,Labour economics ,Trade unions ,Privatisation ,Public ownership ,Earnings ,media_common.quotation_subject ,05 social sciences ,Wage ,Social Sciences ,jel:D21 ,jel:J31 ,jel:J51 ,Collective bargaining ,Wage formation ,Incentive ,jel:L13 ,8. Economic growth ,0502 economics and business ,Privatisation, wage formation, trade unions ,Business ,050207 economics ,050205 econometrics ,media_common - Abstract
We examine the impact of privatisation on wage formation in unionised labour markets. Using longitudinal worker-firm data for Portugal spanning the period 1991-2007, we find that privatisation leads to higher wages, and show that this effect is driven by the fact that privatized firms tend to pay larger mark-ups on the union wage floor. These findings accord with a theoretical model in which actual paid wages are determined via sector-wide collective bargaining and firm-specific "fair-wage" policies, and where private ownership affects wage-setting incentives in both of these stages., COMPETE, QREN, FEDER, Fundação para a Ciência e a Tecnologia (FCT)
- Published
- 2014