This paper establishes a link between the extent of collective bargaining and the degree of productivity dispersion … within an industry. In a unionised oligopoly model we show that for only small differences in productivity levels. a sector …-union can design a collective wage contract that covers a wide range of heterogeneous firms. In sectors with higher productivity …

, productivity, innovation, and survivability – in a RDD framework where the controls comprise establishments that negotiated over … establishment performance. Indeed, the positive effects reported for wages, productivity, and innovation are sustained in …

productivity of a firm, the more likely it is to opt for centralized wage formation where it can hide behind less productive firms …

productivity of a firm, the more likely it is to opt for centralized wage formation where it can hide behind less productive firms …

Conventional theory predicts that productivity gains lead to pay hikes. Pay increases, however, can influence labor … productivity. But what about in a corporatist economy? Focusing on Germany, we use an innovative technique developed by Geweke to … disentangle the relationship between pay and productivity. …