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Opening Clauses in Cellective Bargaining Agreements: More Flexibility to Save Jobs?

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  • Tobias Brändle

    ()

  • Wolf Dieter Heinbach

    ()

Abstract

Collective bargaining agreements have been said to decrease deployment since the work of Calmfors and Driffill (1988). We investigate empirically whether opening clauses, flexible elements that have been introduced to reduce the decline in coverage, can indeed minimise this effect and increase job growth in covered firms. Using representative data on German establishments, the IAB Establishment Panel, in combination with data on opening clauses from the IAW, and performing propensity score matching to control for selectivity bias, we find that the existence of opening clauses has significantly negative effects on job destruction rates and that it increases job growth by approximately 0.73% per year. However, it does not seem the case that firms with explicit knowledge of opening clauses anticipate their increased flexibility, since they do not have higher job creation rates. As regards the actual application of opening clauses, our results do not show additional effects.

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Bibliographic Info

Paper provided by Institut für Angewandte Wirtschaftsforschung (IAW) in its series IAW Discussion Papers with number 67.

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Length: 22 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:iaw:iawdip:67

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Keywords: collective bargaining; opening clauses; job flows; propensity score matching;

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References

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Cited by:
  1. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2013. "Collective Bargaining and Innovation in Germany: Cooperative Industrial Relations?," IZA Discussion Papers 7871, Institute for the Study of Labor (IZA).
  2. repec:iab:iabzaf:v:44:i:1/2:p:163-172 is not listed on IDEAS
  3. Tobias Brändle, 2013. "Flexible Collective Bargaining Agreements: Still a Moderating Effect on Works Council Behaviour?," IAW Discussion Papers 96, Institut für Angewandte Wirtschaftsforschung (IAW).
  4. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2010. "The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues," IZA Discussion Papers 5030, Institute for the Study of Labor (IZA).
  5. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.

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