Impact of national minimum wages on the probability of signing a new collective agreement and the magnitude of increases in negotiated wages

The estimates are based on a two-stage type II Tobit model, which is estimated in two stages. The blue dots represents the point estimate coefficient of the effect of inflation, national minimum wage and the unemployment rate on the probability of signing a new collective agreement (upper panel) and on collectively agreed wages (bottom panel), while the dotted lines represent the confidence interval. If the confidence line does not cross the zero line, an estimate is statistically significantly different from zero with a 95% confidence level. Estimates from a probit model corresponding to the agreement equation with duration and non-compliance dummies, different types of fixed effects (collective agreement, country and month) and a time trend. Confidence intervals (95%) were computed using robust standard errors.