Jung, Sven; Schnabel, Claus - Institute for the Study of Labor (IZA) - 2009
Using a representative establishment data set for Germany, we show that more than 40 percent of plants covered by … collective agreements pay wages above the level stipulated in the agreement, which gives rise to a wage cushion between the … levels of actual and contractual wages. Cross-sectional and fixed-effects estimations for the period 2001-2006 indicate that …