Pedro MARTINS (University of London-Nova SBE-IZA)- No Extension without Representation ? Evidence from a Natural Experiment in Collective Bargaining

Abstract : 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 analyses the causal impact of extensions on employment 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 amongst non-affiliated firms, which may reflect the lack of representativeness of employer associations.

Ce séminaire est organisé par :

Arne UHLENDORFF (Laboratoire de Microéconométrie-CREST)
Laurent DAVEZIES (Laboratoire de Microéconométrie-CREST)