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Collective Agreement Status and Survivability: Change and Persistence in the German Model

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  • John T. Addison
  • Paulino Teixeira
  • Alex Bryson
  • André Pahnke

Abstract

This paper assesses the decline in collective bargaining coverage in Germany. Using repeat cross-section and longitudinal data from the IAB Establishment Panel, it indicates the overwhelming importance of behavioral as opposed to compositional change in this process. Further, in the first use of survival analysis for the purpose, it also charts workplace transitions into and out of collective bargaining. In addition to providing new estimates of the median duration of coverage, the paper reports on the factors generating entry into and exit from collective bargaining. These influences are found to be distinct but symmetric.
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Suggested Citation

  • John T. Addison & Paulino Teixeira & Alex Bryson & André Pahnke, 2013. "Collective Agreement Status and Survivability: Change and Persistence in the German Model," LABOUR, CEIS, vol. 27(3), pages 288-309, September.
    • Handle: RePEc:bla:labour:v:27:y:2013:i:3:p:288-309
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    File URL: http://hdl.handle.net/10.1111/labr.12012
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    1. Bernd Fitzenberger & Karsten Kohn & Qingwei Wang, 2011. "The erosion of union membership in Germany: determinants, densities, decompositions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 141-165, January.
    2. Kohaut, Susanne & Schnabel, Claus, 2001. "Tarifverträge - nein danke!? Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe," Discussion Papers 8, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    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, vol. 60(2), pages 182-209, May.
    4. German Rodriguez & Irma Elo, 2003. "Intra-class correlation in random-effects models for binary data," Stata Journal, StataCorp LP, vol. 3(1), pages 32-46, March.
    5. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke, 2011. "Slip Sliding Away: Further Union Decline In Germany And Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(4), pages 490-518, September.
    6. Bispinck, Reinhard & Dribbusch, Heiner & Schulten, Thorsten, 2010. "German collective bargaining in a European perspective: Continuous erosion or re-stabilisation of multi-employer agreements?," WSI Working Papers 171, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    7. Anke Hassel, 2002. "The Erosion Continues: Reply," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 309-317, June.
    8. Kohaut, Susanne & Ellguth, Peter, 2008. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2007," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 61(9), pages 515-519.
    9. Virginia Doellgast & Ian Greer, 2007. "Vertical Disintegration and the Disorganization of German Industrial Relations1," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 55-76, March.
    10. Anke Hassel, 1999. "The Erosion of the German System of Industrial Relations," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 483-505, September.
    11. Streeck, Wolfgang, 2001. "The transformation of corporate organization in Europe: An overview," MPIfG Working Paper 01/8, Max Planck Institute for the Study of Societies.
    12. 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 of Labor Economics (IZA).
    13. Addison, John T. & Belfield, Clive R., 2002. "Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys," IZA Discussion Papers 455, Institute of Labor Economics (IZA).
    14. Kohaut, Susanne & Ellguth, Peter, 2010. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2009," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 63(4), pages 204-209.
    15. Thomas Klikauer, 2002. "Stability in Germany’s Industrial Relations: A Critique on Hassel’s Erosion Thesis," British Journal of Industrial Relations, London School of Economics, vol. 40(2), pages 295-308, June.
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    Cited by:

    1. Gabriel Felbermayr & Andreas Hauptmann & Hans-Jörg Schmerer, 2014. "International Trade and Collective Bargaining Outcomes: Evidence from German Employer–Employee Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(3), pages 820-837, July.
    2. Martin Popp, 2023. "How elastic is labor demand? A meta-analysis for the German labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-21, December.
    3. Florian Baumann & Tobias Brändle, 2017. "We Want Them All Covered! Collective Bargaining and Firm Heterogeneity: Theory and Evidence from Germany," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 463-499, September.
    4. Andreas Hauptmann, 2019. "Endogenous wage regime selection: A general equilibrium model," Economics Bulletin, AccessEcon, vol. 39(4), pages 2650-2663.
    5. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    6. Schnabel Claus, 2016. "United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 157-179, March.
    7. John T. Addison & Arnd Kölling & Paulino Teixeira, 2014. "Changes in Bargaining Status and Intra-Plant Wage Dispersion in Germany. A Case of (Almost) Plus Ça Change?," GEMF Working Papers 2014-15, GEMF, Faculty of Economics, University of Coimbra.

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    More about this item

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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