Main Collective Agreement 2015 To 2020

The results are also qualitatively and quantitatively similar when the analysis is performed at the crew/agreement/membership (panel C) level. The specifications are similar to the basic results, with the exception of the inclusion of crew models. The standard defects are the clusters according to the cast, the agreement and the date of signature. The inclusion of professional puppets ensures that the effects of extensions in similar occupations are identified and are therefore not motivated by differences in the professional structure of agreements that are prolonged and not extended. In concrete terms, this document analysed the causal impact of administrative extensions on employment growth using natural experience resulting from the immediate suspension of extensions by the government, which took office in Portugal in June 2011. Our analysis uses an RDD that exploits the administrative delay in granting extensions in combination with their suspension in June 2011 and the new consistent data from the employer-employee agreement panel. It is important that this suspension resulted in a significant and unexpected decrease in the likelihood that an extension would have occurred with respect to the date of publication of the underlying collective agreement several months before the change of government. Due to the low number of members of social partners (particularly trade unions), extensions have played a key role in supporting high and stable tariff security in Portugal and have effectively eliminated the margin of low-wage competition between related and unrelated firms in each sector. Given the high unemployment rate and the need to restore international competitiveness, extensions were increasingly seen as a source of wage rigidity, particularly in smaller, younger and generally less productive enterprises, which were generally unaffiliated and unsa term in collective bargaining.

The low membership rates of social partners have therefore not only increased the economic importance of coverage extensions, but have also raised concerns that conventional wage caps are not subject to fair working conditions for unrelated firms. Results based on the residues of the individual regression of basic log wages on job class dummies, which were reduced by type of business (linked vs. unrelated), collective agreement and year.