Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France.
The theory of compensating differentials predicts a negative relationship between wages and good working conditions, while the theory of segmentation predicts a positive one. Combining the hedonic wage model and the wages-employment collective bargaining model, the authors show the relevance of a further factor: a union power effect. Then they test the validity of this effect with French cross-section data. Empirical results confirm the predictions of the model, that is, the coexistence of a negative relationship between wages and good working conditions for the whole sample (market effect) and a positive relationship in highly unionized sectors (union power effect). Copyright 1998 by University of Chicago Press.
Year of publication: |
1998
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Authors: | Daniel, Christophe ; Sofer, Catherine |
Published in: |
Journal of Labor Economics. - University of Chicago Press. - Vol. 16.1998, 3, p. 546-75
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Publisher: |
University of Chicago Press |
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