IDEAS home Printed from https://ideas.repec.org/a/bla/indrel/v49y2018i1p19-33.html
   My bibliography  Save this article

The making of the German minimum wage: a case study of institutional change

Author

Listed:
  • Gerhard Bosch

Abstract

In the more recent dualistic theories, Germany is cited as an example of a less solidaristic equilibrium, in which ‘producer coalitions’ between core workforces supposedly unaffected by deregulation and their employers prevented the introduction of a minimum wage. The present article shows that such an equilibrium never existed. Core workforces are being threatened by the outsourcing of jobs to the low†wage sector. This threat created the breeding ground for a joint campaign by manufacturing and service unions for a minimum wage, which made it possible to amalgamate the unions' considerable resources at company level, their strength being derived from the German system of codetermination. Under pressure from the manufacturing unions in particular, the arrangements for the minimum wage follow, as far as possible, the traditions of free collective bargaining. As a result, the social partners in Germany have a considerably stronger influence on the minimum wage than those in the UK.

Suggested Citation

  • Gerhard Bosch, 2018. "The making of the German minimum wage: a case study of institutional change," Industrial Relations Journal, Wiley Blackwell, vol. 49(1), pages 19-33, January.
    • Handle: RePEc:bla:indrel:v:49:y:2018:i:1:p:19-33
    DOI: 10.1111/irj.12200
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irj.12200
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irj.12200?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dütsch Matthias & Himmelreicher Ralf, 2020. "Characteristics Contributing to Low- and Minimum-Wage Labour in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 161-200, April.
    2. Glenn Morgan & Marco Hauptmeier, 2021. "The Social Organization of Ideas in Employment Relations," ILR Review, Cornell University, ILR School, vol. 74(3), pages 773-797, May.
    3. Sarah Marchal & Linus Sióland, 2019. "A safety net that holds? Tracking minimum income protection adequacy for the elderly, the working and the non-working of active age," Working Papers 1909, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Mathew Johnson & Aristea Koukiadaki & Damian Grimshaw, 2019. "The Living Wage in the UK: testing the limits of soft regulation?," Transfer: European Review of Labour and Research, , vol. 25(3), pages 319-333, August.
    5. Grégory Jemine, 2023. "It takes two to tango: Reconceptualizing union power and union effectiveness in a relational perspective," Industrial Relations Journal, Wiley Blackwell, vol. 54(6), pages 445-470, November.
    6. Friedrich Martin, 2020. "Using Occupations to Evaluate the Employment Effects of the German Minimum Wage," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 269-294, April.
    7. Glenn Morgan & Valeria Pulignano, 2020. "Solidarity at Work: Concepts, Levels and Challenges," Work, Employment & Society, British Sociological Association, vol. 34(1), pages 18-34, February.
    8. Martin Behrens & Andreas Pekarek, 2021. "Divided We Stand? Coalition Dynamics in the German Union Movement," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 503-531, June.
    9. Mark Benton, 2021. "Public justifications for the US minimum wage," Industrial Relations Journal, Wiley Blackwell, vol. 52(4), pages 331-347, July.
    10. Valerie J. D'Erman & Daniel F. Schulz & Amy Verdun & Dennis Zagermann, 2022. "The European Semester in the North and in the South: Domestic Politics and the Salience of EU‐Induced Wage Reform in Different Growth Models," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 21-39, January.
    11. Dütsch Matthias & Himmelreicher Ralf, 2020. "Characteristics Contributing to Low- and Minimum-Wage Labour in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 161-200, April.
    12. Weisstanner, David, 2019. "Insiders under pressure: Flexible employment and wage inequality," INET Oxford Working Papers 2019-06, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    13. Dütsch Matthias & Altun Orkun & Grundmann Luisa & Himmelreicher Ralf, 2023. "What Does the German Minimum Wage Do? The Impact of the Introduction of the Statutory Minimum Wage on the Composition of Low- and Minimum-Wage Labour," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(3-4), pages 355-396, June.
    14. Friedrich Martin, 2020. "Using Occupations to Evaluate the Employment Effects of the German Minimum Wage," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 269-294, April.
    15. Radu Stefan Patru, 2021. "Reflections on actual situation of collective bargaining for the public servants and public services in Romania and in Europe. A theoretical and practical approach," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 11(2), pages 251-261, June.
    16. Torben Krings, 2021. "‘Good’ Bad Jobs? The Evolution of Migrant Low-Wage Employment in Germany (1985–2015)," Work, Employment & Society, British Sociological Association, vol. 35(3), pages 527-544, June.
    17. Haapanala, Henri & Marx, Ive & Parolin, Zachary, 2022. "Decent Wage Floors in Europe: Does the Minimum Wage Directive Get It Right?," IZA Discussion Papers 15660, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:indrel:v:49:y:2018:i:1:p:19-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8692 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.