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Decentralization of wage negotiations in Germany - a way to create more jobs?

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  • Wolfgang Ochel

Abstract

In January 2005, 5.4 million people were officially unemployed in Germany. This corresponded to an unemployment rate of 12.1%. Factors behind the high unemployment are seen in insufficient wage restraint, the inadequate differentiation of wages and their insufficient flexibility. The negative effect of wage developments is often regarded as a result of the German wage negotiation system. The question that arises is whether a decentralisation of wage negotiations can lead to an increase in employment in Germany.

Suggested Citation

  • Wolfgang Ochel, 2005. "Decentralization of wage negotiations in Germany - a way to create more jobs?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(05), pages 07-18, March.
    • Handle: RePEc:ces:ifosdt:v:58:y:2005:i:05:p:07-18
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    Cited by:

    1. Markus Leibrecht & Silvia Rocha-Akis, 2014. "Sozialpartnerschaft und makroökonomische Performance," WIFO Studies, WIFO, number 47406, February.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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