Sara de la Rica

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NBER Working Papers and Publications

December 2005The Effect of Firm-Level Contracts on the Structure of Wages: Evidence from Matched Employer-Employee Data
with David Card: w11829
In many European countries sectoral bargaining agreements are automatically extended to cover all firms in an industry. Employers and employees can also negotiate firm-specific contracts. We use a large matched employer-employee data set from Spain to study the effects of firm-level contracting on the structure of wages. We estimate a series of wage determination models, including specifications that control for individual characteristics, co-worker characteristics, the bargaining status of the workplace, and the probability the workplace is covered by a firm-level contract. We find that firm-level contracting is associated with a 5-10 percent wage premium, with larger premiums for more highly paid workers. Although we cannot decisively test between alternative explanations for the firm-le...

Published: Card, David and Sara de la Rica. “The Effect of Firm-Level Contracts on the Structure of Wages: Evidence from Matched Employer-Employee Data.” Industrial and Labor Relations Review (October 2006).

July 1993Does Public Health Insurance Reduce Labor Market Flexibility or Encourage the Underground Economy? Evidence from Spain and the United States
with Thomas Lemieux: w4402
This paper compares the labor market implications of the health insurance system in Spain and in the United States. While most health insurance is privately provided to workers (by employers) in the United States, Spanish workers obtain health insurance coverage from the public social security system. The Spanish system is financed by a payroll (social security) tax shared between employers and employees. There is clear evidence, however, of widespread non-compliance with the social security tax. This paper empirically compares the incidence of health insurance coverage among U.S. workers to the pattern of compliance with the social security tax among Spanish workers. The main finding of this paper is that these two patterns are very similar. They both depend on the same supply and demand ...

Published: Social Protection versus Economic Flexibility: Is There a Trade-Off?ed. Rebecca Blank, University of Chicago Press, 1994.

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