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The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues

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Author Info

  • John T. Addison

    ()
    (Moore School of Business, University of South Carolina, GEMF, and IZA)

  • Alex Bryson

    (National Institute of Economic and Social Research and CEP)

  • Paulino Teixeira

    ()
    (Faculdade de Economia/GEMF, University of Coimbra, and IZA)

  • André Pahnke

    (Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit)

  • Lutz Bellmann

    (Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit, and IZA)

Abstract

This paper investigates trends in collective bargaining and worker representation in the German private sector from 2000 to 2008. It seeks to update and widen earlier analyses pointing to a decline in collective bargaining, while providing more information on the dual system as a whole. Using data from the IAB Employment Panel and the German Employment Register, we report evidence of a systematic and continuing erosion of the dual system. Not unnaturally the decline is led by developments in western Germany. One conjecture is that the path of erosion will continue until rough and ready convergence is reached with eastern Germany in a sharp reversal of other post-unification trends.

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Bibliographic Info

Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2011-09.

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Length: 35 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:gmf:wpaper:2011-09

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Keywords: Trends in collective bargaining and worker representation; Transitions; establishment data.;

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References

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  1. Gabriele Fischer & Florian Janik & Dana Müller & Alexandra Schmucker, 2009. "European Data Watch: The IAB Establishment Panel - Things Users Should Know," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, Duncker & Humblot, Berlin, vol. 129(1), pages 133-148.
  2. Tobias Brändle & Wolf Dieter Heinbach, 2010. "Opening Clauses in Cellective Bargaining Agreements: More Flexibility to Save Jobs?," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 67, Institut für Angewandte Wirtschaftsforschung (IAW).
  3. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André, 2010. "Slip Sliding Away: Further Union Decline in Germany and Britain," IZA Discussion Papers 4760, Institute for the Study of Labor (IZA).
  4. Wolfgang Ochel, 2003. "Decentralising Wage Bargaining in Germany – A Way to Increase Employment?," CESifo Working Paper Series 1069, CESifo Group Munich.
  5. Susanne Kohaut & Claus Schnabel, 2003. "Tarifverträge - nein danke!?, Ausmaß und Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 223(3), pages 312-331, May.
  6. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellman, 2009. "The extent of collective bargaining and workplace representation: transitions between states and their determinants. A comparative analysis of Germany and Great Britain," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 27779, London School of Economics and Political Science, LSE Library.
  7. Kohaut, Susanne & Schnabel, Claus, 2006. "Tarifliche Öffnungsklauseln : Verbreitung, Inanspruchnahme und Bedeutung," Discussion Papers, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics 41, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  8. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2006. "The (Parlous) State of German Unions," IZA Discussion Papers 2000, Institute for the Study of Labor (IZA).
  9. Wolf Heinbach, 2007. "Wages in wage-setting regimes with opening clauses," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, Springer, vol. 1(3), pages 233-245, December.
  10. 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, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 225(6), pages 630-652, November.
  11. Streeck, Wolfgang, 2001. "The transformation of corporate organization in Europe: An overview," MPIfG Working Paper, Max Planck Institute for the Study of Societies 01/8, Max Planck Institute for the Study of Societies.
  12. Virginia Doellgast & Ian Greer, 2007. "Vertical Disintegration and the Disorganization of German Industrial Relations-super-1," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 45(1), pages 55-76, 03.
  13. Lutz Bellmann & Peter Ellguth, 2006. "Verbreitung von Betriebsräten und ihr Einfluss auf die betriebliche Weiterbildung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(5), pages 487-504, September.
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Citations

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Cited by:
  1. John Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2014. "Indicative and Updated Estimates of the Collective Bargaining Premium in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, Wiley Blackwell, vol. 53(1), pages 125-156, 01.
  2. Paul Ryan & Uschi Backes-Gellner & Silvia Teuber & Karin Wagner, 2012. "Apprentice pay in Britain, Germany and Switzerland: institutions, market forces, market power," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0075, University of Zurich, Institute for Strategy and Business Economics (ISU).
  3. 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).
  4. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.
  5. Gabriel J. Felbermayr & Andreas Hauptmann & Hans-Jörg Schmerer, 2012. "International Trade and Collective Bargaining Outcomes: Evidence from German Employer-Employee Data," Ifo Working Paper Series Ifo Working Paper No. 130, Ifo Institute for Economic Research at the University of Munich.
  6. Addison, John T. & Teixeira, Paulino & Stephani, Jens & Bellmann, Lutz, 2014. "Union Decline and the Coverage Wage Gap in Germany," IZA Discussion Papers 8257, Institute for the Study of Labor (IZA).
  7. Hirsch, Barry, 2010. "Unions, Dynamism, and Economic Performance," IZA Discussion Papers 5342, Institute for the Study of Labor (IZA).
  8. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute for the Study of Labor (IZA).
  9. John Addison & Paulino Teixeira & Jens Stephani & Lutz Bellmann, 2012. "Can German Unions Still Cut It?," GEMF Working Papers, GEMF - Faculdade de Economia, Universidade de Coimbra 2012-19, GEMF - Faculdade de Economia, Universidade de Coimbra.
  10. 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.

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