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Decentralising Wage Bargaining in Germany – A Way to Increase Employment?

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  • Wolfgang Ochel

Abstract

The area-wide wage agreement is at the centre of Germany’s system of collective bargaining. In recent years, however, there has been a tendency towards the decentralisation of collective bargaining. Individual wage agreements have led to more moderate wage developments, whilst wage agreements with individual firms, and agreements at the production unit level have not had this moderating effect. On the other hand, collective bargaining has become more flexible. The further decentralisation of collective bargaining gives rise to objections based in constitutional law and to the resistance of employees and (in part) also of employers.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1069.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_1069

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  1. Beissinger, Thomas & Knoppik, Christoph, 2003. "Sind Nominallöhne starr? Neuere Evidenz und wirtschaftspolitische Implikationen," IZA Discussion Papers 800, Institute for the Study of Labor (IZA).
  2. Hans-Werner Sinn & Christian Holzner & Wolfgang Meister & Wolfgang Ochel & Martin Werding, 2002. "Aktivierende Sozialhilfe - Ein Weg zu mehr Beschäftigung und Wachstum," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 55(09), pages 03-52, 05.
  3. Franz, Wolfgang & Gutzeit, Martin & Lessner, Jan & Oechsler, Walter A. & Pfeiffer, Friedhelm & Reichmann, Lars & Rieble, Volker & Roll, Jochen, 2000. "Flexibilisierung der Arbeitsentgelte und Beschäftigungseffekte: Ergebnisse einer Unternehmensbefragung," ZEW Dokumentationen, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 00-09, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(462), pages C1-33, March.
  5. Richard B. Freeman & Robert Gibbons, 1993. "Getting Together and Breaking Apart: The Decline of Centralised Collective Bargaining," NBER Working Papers 4464, National Bureau of Economic Research, Inc.
  6. Hassel, Anke & Rehder, Britta, 2001. "Institutional change in the German wage bargaining system: The role of big companies," MPIfG Working Paper, Max Planck Institute for the Study of Societies 01/9, Max Planck Institute for the Study of Societies.
  7. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
  8. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training in Europe," Journal of the European Economic Association, MIT Press, MIT Press, vol. 2(2-3), pages 346-360, 04/05.
  9. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
  10. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, Elsevier, vol. 45(10), pages 1851-1875, December.
  11. Fitzenberger, Bernd & Franz, Wolfgang, 1999. "Der Flächentarifvertrag: Eine kritische Würdigung aus ökonomischer Sicht," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 99-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Franz, Wolfgang & Pfeiffer, Friedhelm, 2001. "Tarifbindung und die ökonomische Rationalität von Lohnrigiditäten," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 01-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Moene, K.O. & Wallerstein, M. & Hoel, M., 1992. "Bargaining Structure and Economic Performance," Memorandum, Oslo University, Department of Economics 10/1992, Oslo University, Department of Economics.
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Cited by:
  1. Gürtzgen, Nicole, 2005. "Rent-sharing : Does the Bargaining Regime Make a Difference? Theory and Empirical Evidence," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 05-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Peng, Fei & Siebert, W. Stanley, 2007. "Real Wage Cyclicality in Germany and the UK: New Results Using Panel Data," IZA Discussion Papers 2688, Institute for the Study of Labor (IZA).
  3. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 60(2), pages 182-209, 05.
  4. Fei Peng & W. Stanley Siebert, 2008. "Real Wage Cyclicality in Italy," LABOUR, CEIS, CEIS, vol. 22(4), pages 569-591, December.
  5. Wolfgang Ochel, 2003. "National Institutional Systems in Global Competition and the Inertia of German Labour Market Institutions," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 1(4), pages 33-38, 02.
  6. Wolfgang Ochel, 2005. "Concepts and Measurement of Labour Market Institutions," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 3(4), pages 40-55, 01.
  7. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2012. "Is the Erosion Thesis Overblown? Evidence from the Orientation of Uncovered Employers," IZA Discussion Papers 6658, Institute for the Study of Labor (IZA).
  8. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2011. "The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues," GEMF Working Papers, GEMF - Faculdade de Economia, Universidade de Coimbra 2011-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
  9. Zohal Hessami & Thushyanthan Baskaran, 2013. "Has Globalization Affected Collective Bargaining? An Empirical Test, 1980-2009," Working Paper Series of the Department of Economics, University of Konstanz, Department of Economics, University of Konstanz 2013-02, Department of Economics, University of Konstanz.
  10. Gürtzgen, Nicole, 2005. "Rent-Sharing and Collective Bargaining Coverage: Evidence from Linked Employer-Employee Data," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 05-90, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  11. Pia Rattenhuber, 2012. "Marginal Taxes: A Good or a Bad for Wages?: The Incidence of the Structure of Income and Labor Taxes on Wages," Discussion Papers of DIW Berlin 1193, DIW Berlin, German Institute for Economic Research.

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