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What can we Learn from Bargaining Models about Union Power? The Decline in Union Power in Germany, 1992–2009

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  • Boris Hirsch
  • Claus Schnabel

Abstract

type="main"> Building on the right-to-manage model of collective bargaining, this paper tries to infer union power from the observed results in wage setting. It derives a time-varying indicator of union strength taking account of taxation, unemployment benefits, and the labour market situation and confronts this indicator with annual data for Germany. The results show that union power did not change much from 1992 to 2002 but fell markedly (by about one-third) from 2002 to 2007 in the aftermath of substantial labour market reforms.

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  • Boris Hirsch & Claus Schnabel, 2014. "What can we Learn from Bargaining Models about Union Power? The Decline in Union Power in Germany, 1992–2009," Manchester School, University of Manchester, vol. 82(3), pages 347-362, June.
    • Handle: RePEc:bla:manchs:v:82:y:2014:i:3:p:347-362
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    Cited by:

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    2. Capuano, Stella & Hauptmann, Andreas & Schmerer, Hans-Jörg, 2014. "Trade and unions: Can exporters benefit from collective bargaining?," IAB-Discussion Paper 201424, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Sabien Dobbelaere & Boris Hirsch & Steffen Mueller & Georg Neuschaeffer, 2020. "Organised Labour, Labour Market Imperfections, and Employer Wage Premia," Working Paper Series in Economics 396, University of Lüneburg, Institute of Economics.
    4. Stella Capuano & Hans-Jörg Schmerer, 2015. "Trade and Unemployment Revisited: Do Institutions Matter?," The World Economy, Wiley Blackwell, vol. 38(7), pages 1037-1063, July.
    5. Matthias Strifler & Thomas Beissinger, 2016. "Fairness Considerations in Labor Union Wage Setting – A Theoretical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 303-330, July.
    6. Kraft, Kornelius, 2018. "Productivity and distribution effects of codetermination in an efficient bargaining model," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 458-485.
    7. Boris Hirsch & Steffen Mueller, 2020. "Firm Wage Premia, Industrial Relations, and Rent Sharing in Germany," ILR Review, Cornell University, ILR School, vol. 73(5), pages 1119-1146, October.
    8. 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.
    9. Sabien Dobbelaere & Boris Hirsch & Steffen Mueller & Georg Neuschaeffer, 2024. "Organized Labor, Labor Market Imperfections, and Employer Wage Premia," ILR Review, Cornell University, ILR School, vol. 77(3), pages 396-427, May.
    10. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
    11. Glitz, Albrecht & Wissmann, Daniel, 2021. "Skill Premiums and the Supply of Young Workers in Germany," Labour Economics, Elsevier, vol. 72(C).
    12. Albrecht Glitz & Daniel Wissmann, 2017. "Skill Premiums and the Supply of Young Workers in Germany," CESifo Working Paper Series 6576, CESifo.

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