| Abstract: | Abstract. This paper analyses collective bargaining using Spanish firm‐level data. Central to the analysis are the joint determination of wage and strike outcomes in a dynamic framework and the possibility of separate wage equation for strike and non‐strike outcomes. Conditional to strikes taking place, we confirm a negative relationship between strike duration and wage changes in a dynamic context. In this sense, the joint effect of the strike variables is positive for short strikes and negative for long ones (above 20 days). Furthermore, we find selection in wage equations induced by the strike outcome. In this sense, the possibility of wage determination processes being different in strike and non‐strike samples is not rejected by the data. In particular, wage dynamics are of opposite sign in both strike and non‐strike equations. Finally, we find evidence of a 0.33 percentage points wage change strike premium. |
