Dobbelaere, SabienHirsch, BorisMüller, SteffenNeuschäffer, GeorgLeibniz-Institut für Wirtschaftsforschung Halle2025-05-302023kxp: 1870108418https://epflicht.bibliothek.uni-halle.de/handle/123456789/131151870108418urn:nbn:de:gbv:3:2-9993823274896This paper examines how collective bargaining through unions and workplace co-determination through works councils relate to labour market imperfections and how labour market imperfections relate to employer wage premia. Based on representative German plant data for the years 1999-2016, we document that 70% of employers pay wages below the marginal revenue product of labour and 30% pay wages above. We further find that the prevalence of wage mark-downs is significantly smaller when organised labour is present and that the ratio of wages to the marginal revenue product of labour is significantly bigger. Finally, we document a close link between labour market imperfections and mean employer wage premia, that is wage differences between employers corrected for worker sorting.1 Online-Ressource (III, 48 Seiten, 1,01 MB)enghttp://rightsstatements.org/vocab/InC/1.0/330Book