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Union coverage and sectoral wages: Evidence from the Netherlands

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Abstract

This paper investigates the impact of union coverage on sectoral wages in the Netherlands. The semi-elasticity of the wage rate with respect to union coverage appears to be around 0.05; it is higher in the industrial than in the other sectors. The impact of union coverage on wages appears to be lower in the Netherlands than in the US and the UK. Union coverage increases the weight of internal (sector-specific) factors in wage determination and decreases the weight of external (labour market) factors. Apparently, unions increase the role of rent sharing in wage formation and stabilize employment.

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Authors and Affiliations

  1. EIM Small Business Research and Consultancy, P.O. Box 7001, 2701 AA, Zoetermeer, The Netherlands

    Marcel H. C. Lever & Wessel A. Marquering

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  1. Marcel H. C. Lever
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  2. Wessel A. Marquering
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Lever, M.H.C., Marquering, W.A. Union coverage and sectoral wages: Evidence from the Netherlands. Empirical Economics 21, 483–499 (1996). https://doi.org/10.1007/BF01180697

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  • DOI: https://doi.org/10.1007/BF01180697

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