Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina
- Autores
- Ramírez Leira, Lucía; Lombardo, Carlo Ignazio; Gasparini, Leonardo Carlos
- Año de publicación
- 2025
- Idioma
- inglés
- Tipo de recurso
- documento de trabajo
- Estado
- versión enviada
- Descripción
- In Argentina, the national minimum wage (NMW) coexists with sectoral wage floors (WF) established through collective bargaining agreements (CBA). These WFs exceed the NMW for most registered workers, rendering the minimum wage largely ineffective. Using novel data on union-negotiated wages combined with administrative records, this paper analyzes the impact of WFs set in CBAs on employment, wages, and wage inequality among formal workers. The analysis is conducted at both the industry and individual levels, utilizing a fixed-effects model by year and sector and a linear probability model based on individual worker trajectories. Results indicate that CBAs reduce overall wage inequality by decreasing inequality at the upper end of the distribution without affecting the lower end. No significant employment effects are found, except for a negative impact in sectors with a higher proportion of small firms (MSMEs). However, at the worker level, CBAs reduce the probability of remaining employed for workers near the wage floors, with more negative effects observed in MSMEs. Finally, CBAs’ positive effect on wage increases and negative effects on employment are more pronounced in unfavorable macroeconomic conditions.
Centro de Estudios Distributivos, Laborales y Sociales - Materia
-
Ciencias Económicas
Inequality
Employment
Collective Bargaining
Unions
Minimum Wage
Argentina - Nivel de accesibilidad
- acceso abierto
- Condiciones de uso
- http://creativecommons.org/licenses/by/4.0/
- Repositorio
- Institución
- Universidad Nacional de La Plata
- OAI Identificador
- oai:sedici.unlp.edu.ar:10915/182278
Ver los metadatos del registro completo
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Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in ArgentinaRamírez Leira, LucíaLombardo, Carlo IgnazioGasparini, Leonardo CarlosCiencias EconómicasInequalityEmploymentCollective BargainingUnionsMinimum WageArgentinaIn Argentina, the national minimum wage (NMW) coexists with sectoral wage floors (WF) established through collective bargaining agreements (CBA). These WFs exceed the NMW for most registered workers, rendering the minimum wage largely ineffective. Using novel data on union-negotiated wages combined with administrative records, this paper analyzes the impact of WFs set in CBAs on employment, wages, and wage inequality among formal workers. The analysis is conducted at both the industry and individual levels, utilizing a fixed-effects model by year and sector and a linear probability model based on individual worker trajectories. Results indicate that CBAs reduce overall wage inequality by decreasing inequality at the upper end of the distribution without affecting the lower end. No significant employment effects are found, except for a negative impact in sectors with a higher proportion of small firms (MSMEs). However, at the worker level, CBAs reduce the probability of remaining employed for workers near the wage floors, with more negative effects observed in MSMEs. Finally, CBAs’ positive effect on wage increases and negative effects on employment are more pronounced in unfavorable macroeconomic conditions.Centro de Estudios Distributivos, Laborales y Sociales2025-08info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/182278enginfo:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas353.pdf?dl=0info:eu-repo/semantics/altIdentifier/issn/1853-0168info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/4.0/Creative Commons Attribution 4.0 International (CC BY 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-10-22T17:30:36Zoai:sedici.unlp.edu.ar:10915/182278Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-10-22 17:30:37.224SEDICI (UNLP) - Universidad Nacional de La Platafalse |
dc.title.none.fl_str_mv |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
title |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
spellingShingle |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina Ramírez Leira, Lucía Ciencias Económicas Inequality Employment Collective Bargaining Unions Minimum Wage Argentina |
title_short |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
title_full |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
title_fullStr |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
title_full_unstemmed |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
title_sort |
Wage Floors Set in Collective Bargaining: Evidence on Wages and Employment in Argentina |
dc.creator.none.fl_str_mv |
Ramírez Leira, Lucía Lombardo, Carlo Ignazio Gasparini, Leonardo Carlos |
author |
Ramírez Leira, Lucía |
author_facet |
Ramírez Leira, Lucía Lombardo, Carlo Ignazio Gasparini, Leonardo Carlos |
author_role |
author |
author2 |
Lombardo, Carlo Ignazio Gasparini, Leonardo Carlos |
author2_role |
author author |
dc.subject.none.fl_str_mv |
Ciencias Económicas Inequality Employment Collective Bargaining Unions Minimum Wage Argentina |
topic |
Ciencias Económicas Inequality Employment Collective Bargaining Unions Minimum Wage Argentina |
dc.description.none.fl_txt_mv |
In Argentina, the national minimum wage (NMW) coexists with sectoral wage floors (WF) established through collective bargaining agreements (CBA). These WFs exceed the NMW for most registered workers, rendering the minimum wage largely ineffective. Using novel data on union-negotiated wages combined with administrative records, this paper analyzes the impact of WFs set in CBAs on employment, wages, and wage inequality among formal workers. The analysis is conducted at both the industry and individual levels, utilizing a fixed-effects model by year and sector and a linear probability model based on individual worker trajectories. Results indicate that CBAs reduce overall wage inequality by decreasing inequality at the upper end of the distribution without affecting the lower end. No significant employment effects are found, except for a negative impact in sectors with a higher proportion of small firms (MSMEs). However, at the worker level, CBAs reduce the probability of remaining employed for workers near the wage floors, with more negative effects observed in MSMEs. Finally, CBAs’ positive effect on wage increases and negative effects on employment are more pronounced in unfavorable macroeconomic conditions. Centro de Estudios Distributivos, Laborales y Sociales |
description |
In Argentina, the national minimum wage (NMW) coexists with sectoral wage floors (WF) established through collective bargaining agreements (CBA). These WFs exceed the NMW for most registered workers, rendering the minimum wage largely ineffective. Using novel data on union-negotiated wages combined with administrative records, this paper analyzes the impact of WFs set in CBAs on employment, wages, and wage inequality among formal workers. The analysis is conducted at both the industry and individual levels, utilizing a fixed-effects model by year and sector and a linear probability model based on individual worker trajectories. Results indicate that CBAs reduce overall wage inequality by decreasing inequality at the upper end of the distribution without affecting the lower end. No significant employment effects are found, except for a negative impact in sectors with a higher proportion of small firms (MSMEs). However, at the worker level, CBAs reduce the probability of remaining employed for workers near the wage floors, with more negative effects observed in MSMEs. Finally, CBAs’ positive effect on wage increases and negative effects on employment are more pronounced in unfavorable macroeconomic conditions. |
publishDate |
2025 |
dc.date.none.fl_str_mv |
2025-08 |
dc.type.none.fl_str_mv |
info:eu-repo/semantics/workingPaper info:eu-repo/semantics/submittedVersion Documento de trabajo http://purl.org/coar/resource_type/c_8042 info:ar-repo/semantics/documentoDeTrabajo |
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http://sedici.unlp.edu.ar/handle/10915/182278 |
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eng |
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eng |
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info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International (CC BY 4.0) |
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openAccess |
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http://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International (CC BY 4.0) |
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