Is the Erosion Thesis Overblown? Alignment from Without in Germany
It is sometimes alleged that collective bargaining coverage in Germany is understated because uncovered firms â€˜orientâ€™ themselves toward sectoral agreements. In fact, although orientation has grown as sectoral bargaining has declined, their joint frequency has fallen. Further, where orientation occurs at firms that leave a sectoral agreement, it provides only partial compensation. But the small deficits involved, in conjunction with some indirect evidence on joiners, suggest modest attenuation of the undoubted decline in collective bargaining.
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