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Company-Level Pacts for Employment

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Author Info
Lutz Bellmann () (Bundesagentur für Arbeit, Nürnberg)
Knut Gerlach () (Universität Hannover)
Wolfgang Meyer () (Leibniz Universität Hannover)
Abstract

Company-level pacts for employment are agreements betweenmanagement and the company’s work force that are characterized by concessions from both bargaining partners. Employees agree to company-specific deviations from a collective contract that include negative components like reduced wages or prolonged working time in exchange for employment guarantees or investment programs. These pacts are negotiated to avoid or mitigate a decline of employment or to improve the long-term competitiveness of the firm. Based on the IAB Establishment Panel of the years 2004 to 2007 the employment consequences of these pacts are analyzed. It can be shown that company-level pacts tend to correlate negatively with employment growth. This finding basically holds if the endogeneity of pacts is taken into account.

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Publisher Info
Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 228 (2008)
Issue (Month): 5+6 (December)
Pages: 533-553
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Handle: RePEc:jns:jbstat:v:228:y:2008:i:5+6:p:533-553

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Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
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Related research
Keywords: Collective contracts; decentralization of wage-setting; employment effects;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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This page was last updated on 2009-12-8.


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