Local institutions, union wage effects and native–foreign wage gaps. Issue 3 (4th March 2022)

• Record Type: Journal Article
• Authors: Schmidt, Torben Dall
• Is Part Of: Regional studies. Volume 56:Issue 3(2022)
• Page Start: 433
• Page End: 446
• Publication Date: 2022-03-04
• Subjects: local wage bargaining -- wage gaps by origin -- union wage premium -- peer effects -- cross-border commuting; J31 -- J51 -- J61 -- R23; Regional planning -- Periodicals; Regional planning -- Great Britain -- Periodicals; 307.14
• DOI: 10.1080/00343404.2021.1953695
• Languages: English
• ISSNs: 0034-3404

Abstract

ABSTRACT: Local institutions in the shape of collective wage bargaining in firms are important for wage differences among labour of various origins. This paper considers local rent-sharing in Danish firms and finds that local wage bargaining reduces wage gaps between cross-border commuters of Danish, Swedish, German and Polish origins. Wage gaps are found to be between 6% and 12%, while individual union membership reduces the wage gap. Local peer effects, on the other hand, may increase wage gaps particularly for cross-border commuters of Polish origin, which can be interpreted as a form of local club behaviour in bargaining at the firm level.