Company-Level Pacts for Employment
Company-level pacts for employment are agreements between management and the company's work force that are characterized by concessions from both bargaining partners. Employees agree to company-specific deviations from a collective contract that include negative components like reduced wages or prolonged working time in exchange for employment guarantees or investment programs. These pacts are negotiated to avoid or mitigate a decline of employment or to improve the long-term competitiveness of the firm. Based on the IAB Establishment Panel of the years 2004 to 2007 the employment consequences of these pacts are analyzed. It can be shown that company-level pacts tend to correlate negatively with employment growth. This finding basically holds if the endogeneity of pacts is taken into account.
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Volume (Year): 228 (2008)
Issue (Month): 5-6 (October)
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