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What a difference trade makes: Export activity and the flexibility of collective bargaining agreements

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Author Info
Heinbach, Wolf Dieter
Schröpfer, Stefanie

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Abstract

"The prevalence of opening clauses in collective bargaining agreements may indicate a tendency towards more decentralised wage setting. Increasing competition on international product markets is assumed to be one reason for the decentralisation of collective bargaining. Current theoretical explanations focus merely on firm-level differences in the exposure to international competition. Unlike non-exporting firms, exporters are assumed to be exposed to international competition and are therefore in need of greater wage flexibility. However, incorporating stylised facts about exporting firms, new theoretical trade models suggest that firms differ from each other in how they adjust to increasing competition depending on their export behaviour as a measure of productivity. While large, highly productive exporters expand into new markets, small, low-productive non-exporters are threatened by import competition. Based on a trade model by Bernard et al. (2003), we are able to explain verbally how a decentralisation of wage bargaining arises due to different labour demand reactions of exporters and non-exporters. In contrast to the result assuming differences in the exposure to international competition, we find non-exporters to require greater wage flexibility. As the introduction of opening clauses increases wage flexibility at firm level, we examine empirically whether exporters or non-exporters have a higher probability of using opening clauses. Based on IAB establishment data covering the western German manufacturing sector, our results suggest that firms exporting to EMU countries - but not exporters in general - have a lower propensity for using opening clauses than non-exporters." (author's abstract, IAB-Doku) ((en))

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Article provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.

Volume (Year): 41 (2008)
Issue (Month): 2/3 ()
Pages: 287-303
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Handle: RePEc:iab:iabzaf:v:41:i:2/3:p:287-303

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Related research
Keywords: Tarifvertrag; Öffnungsklausel; Tarifverhandlungen; Dezentralisation; internationaler Wettbewerb; Wettbewerbsfähigkeit; Lohnflexibilität; IAB-Betriebspanel; verarbeitendes Gewerbe; Außenhandel; Export - Auswirkungen; Westdeutschland; Bundesrepublik Deutschland;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Wolf Dieter Heinbach & Stefanie Schröpfer, 2007. "Typisierung der Tarifvertragslandschaft. Eine Clusteranalyse der tarifvertraglichen Öffnungsklauseln," IAW Discussion Papers 28, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
    Other versions:
  2. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and Productivity in International Trade," Boston University - Institute for Economic Development 105, Boston University, Institute for Economic Development. [Downloadable!]
    Other versions:
  3. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  4. Harry C. Katz, 1993. "The decentralization of collective bargaining: A literature review and comparative analysis," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(1), pages 3-22, October.
  5. Wolf Heinbach, 2007. "Wages in wage-setting regimes with opening clauses," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 1(3), pages 233-245, December. [Downloadable!] (restricted)
  6. Thorsten Schank & Claus Schnabel & Joachim Wagner, 2006. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Working Paper Series in Economics 28, University of Lüneburg, Institute of Economics. [Downloadable!]
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  7. Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(2), pages 219-243, July. [Downloadable!] (restricted)
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  8. Jensen, Uwe & Rässler, Susanne, 2007. "The effects of collective bargaining on firm performance : new evidence based on stochastic production frontiers and multiply imputed German establishment data," IAB-Forschungsbericht 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  9. Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LP, vol. 5(3), pages 309-329, September. [Downloadable!]
  10. Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 134-157, March. [Downloadable!] (restricted)
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  11. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Blackwell Publishing, vol. 30(1), pages 60-82, 01. [Downloadable!] (restricted)
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  12. Olaf Huebler, 2005. "Sind betriebliche Bündnisse für Arbeit erfolgreich?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 225(6), pages 630-652, November. [Downloadable!] (restricted)
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