%0 Report %A Hirsch, Boris %A Müller, Steffen %T Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany %D 2018 %8 2018 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 11309 %U https://www.iza.org/publications/dp11309 %X This paper investigates the influence of industrial relations on firm wage premia in Germany. OLS regressions for the firm effects from a two-way fixed effects decomposition of workers' wages by Card, Heining, and Kline (2013) document that average premia are larger in firms bound by collective agreements and in firms with a works council, holding constant firm performance. RIF regressions show that premia are less dispersed among covered firms but more dispersed among firms with a works council. Hence, deunionization is the only among the suspects investigated that contributes to explaining the marked rise in the premia dispersion over time. %K rent sharing %K bargaining power %K works councils %K trade unions %K industrial relations %K firm wage premium %K wage inequality %K Germany