Collective wage agreements and the adjustment of workers and hours in German service firms
AbstractThere is a growing concern about collective wage agreement and employment dynamics in Germany. In this paper, evidence is provided on the way collective wage agreements affect the adjustment of working hours, employment and other production factors when firms from the service sector are faced with demand shocks. The estimation results indicate that collective wage agreements significantly influence firms' employment policies. Enrolments and the employment of free-lance collaborators are negatively affected while the probability of using short-term employment contracts as a reaction to demand shocks is positively influenced. No significant effect on the probability of dismissing workers has been found. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 00-33.
Date of creation: 2000
Date of revision:
collective wage agreements; demand fluctuations and adjustment costs; random effects ordered probit model; business-related services;
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
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