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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)

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    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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    Bibliographic 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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    Related research

    Keywords: Collective contracts; decentralization of wage-setting; employment effects;

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    References

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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.:
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    1. 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.
    2. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    3. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, October.
    4. Fitzenberger, Bernd & Franz, Wolfgang, 1999. "Der Flächentarifvertrag: Eine kritische Würdigung aus ökonomischer Sicht," ZEW Discussion Papers 99-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. John T. Addison & Claus Schnabel & Joachim Wagner, 2006. "The (Parlous) State of German Unions," Working Paper Series in Economics 23, University of Lüneburg, Institute of Economics.
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    Citations

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    Cited by:
    1. Bargain, O. & Herwig Immervoll & Andreas Peichl & Siegloch, S., 2010. "GINI DP 1: Distributional Consequences of Labor-Demand Adjustments to a Downturn. A Model-Based Approach with Application to Germany 2008-09," GINI Discussion Papers 1, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2009. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," IZA Discussion Papers 4502, Institute for the Study of Labor (IZA).
    3. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
    4. Vivian Carstensen, 2013. "The German Labor Market Miracle Revisited: Risk Elimination in Working Time Accounts," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 1(1), pages 19-38.
    5. Lutz Bellmann & Hans-Dieter Gerner, 2012. "Further Training and Company-Level Pacts for Employment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(2), pages 98-115, March.
    6. Tobias Brändle, 2013. "Flexible Collective Bargaining Agreements: Still a Moderating Effect on Works Council Behaviour?," IAW Discussion Papers 96, Institut für Angewandte Wirtschaftsforschung (IAW).
    7. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2011. "Distributional Consequences of Labor-demand Shocks: The 2008-09 Recession in Germany," CESifo Working Paper Series 3403, CESifo Group Munich.
    8. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2012. "Distributional consequences of labor-demand shocks: the 2008–2009 recession in Germany," International Tax and Public Finance, Springer, vol. 19(1), pages 118-138, February.
    9. Katja Görlitz, 2010. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(2), pages 186-207.
    10. Köllő, János, 2010. "Vállalati reakciók a gazdasági válságra, 2008-2009
      [Corporate reactions to the economic crisis, 2008-9]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1045-1064.
    11. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute for the Study of Labor (IZA).

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