Pacts for employment and competitiveness in Germany

Seifert, Hartmut; Massa-Wirth, Heiko

doi:10.1111/j.1468-2338.2005.00355.x

Cited by 100 publications

(58 citation statements)

References 3 publications

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“…A discussion regarding the problems and features of CLPs can be found in MassaWirth and Seifert (2005), Seifert and Massa-Wirth (2005) and Bogedan et al (2011). A survey of work councils conducted by the Economic and Social Research Institute (WSI) explains the economic and institutional factors that influence the spread and composition of these concessionary agreements.…”

Section: Company-level Pactsmentioning

confidence: 99%

Investment under company-level pacts before and during the Great Recession

Bellmann

Gerner

Hübler³

2014

Economic and Industrial Democracy

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Company-level pacts between the management and the works council are often preferred in comparison to agreements between employers' association and unions because the former negotiating partners are better informed about the economic situation of a company and have fewer goal conflicts than the latter. Moreover, these company-level pacts might reduce the 'holdup' problems which arise once specialized investment is made. Therefore, this article investigates whether such agreements affect firm-level investment. Based on the IAB Establishment Panel Survey 2001-2010 the study indicates that the adoption of a company-level pact leads to a higher investment rate than in other firms driven by reinvestment. However, the Great Recession has damped this positive influence. From the econometric analysis the article does not detect any increase in investment during the negotiation phase. After the expiration of a company-level pact, lower reinvestment and a small increase in net investment take place. Keywords Deregulation of industrial relations, industrial relations, trade unionsIt is widely acknowledged that German reforms of the past decade have been designed with competitiveness and employment in mind; thereby the low wage increases have had a material effect on export competitiveness in a range of manufacturing industries, such as industrial machinery.

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Section: Company-level Pactsmentioning

confidence: 99%

Investment under company-level pacts before and during the Great Recession

Bellmann

Gerner

Hübler³

2014

Economic and Industrial Democracy

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“…A negative linkage between unemployment and wages could be explained by the labour contract and union bargaining models. Although pacts of employment and competitiveness relieved wage agreements at the firm level in Germany (Seifert and Massa-Wirth 2005), collective bargaining is still dominant (Fitzenberger, Kohn and Lembcke 2013). However, collective agreements refer to the industrial, not to the regional level (Fitzenberger, Kohn and Lembcke 2013).…”

Section: The Concept Of the Wage Curvementioning

confidence: 99%

Towards an East German Wage Curve - Nuts Boundaries, Labour Market Regions and Unemployment Spillovers

Kosfeld

Dreger

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. The relevance of spatial effects in the wage curve can be rationalized by the model of monopsonistic competition in regional labour markets. However, distortions in extracting the regional unemployment effects arise in standard regional (i.e. NUTS) classifications as they fail to adequately capture spatial processes. In addition, the nonstationarity of wages and unemployment is often ignored. Both issues are particularly important in high unemployment regimes like East Germany where a wage curve is difficult to establish. In this paper, labour market regions defined by economic criteria are used to examine the existence of an East German wage curve. Due to the nonstationarity of spatial data, a global panel cointegration approach is adopted. By specifying a spatial error correction model (SpECM), equilibrium adjustments are investigated in time and space. The analysis gives evidence on a locally but not a spatially cointegrated wage curve for East Germany. Terms of use: Documents in

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“…Although pacts of employment and competitiveness relieved wage agreements at the firm level in Germany (Seifert and Massa-Wirth 2005), collective bargaining is still dominant (Fitzenberger, Kohn and Lembcke 2013). Hence, the union bargaining model could be another candidate to explain the wage curve.…”

Section: The Concept Of the Wage Curvementioning

confidence: 99%

Local and Spatial Cointegration in the Wage Curve -- A Spatial Panel Analysis for German Regions

Kosfeld

Dreger

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. The wage curve introduced by Oswald (1990, 1994) postulates a negative correlation between wages and unemployment. Empirical results focus on particular theoretical channels establishing the relationship. Panel models mostly draw on unionized bargaining or the efficiency wage hypothesis. Spatial econometric approaches can be rationalized by monopsonistic competition. However, the approaches either ignore the issue of nonstationarity or treat the data as if it were nonspatial. In this paper, we adopt a global cointegration approach recently proposed by Bienstock and Felsenstein (2010) to account for nonstationarity of regional data. By specifying a spatial error correction model (SpECM), equilibrium adjustments are considered in both space and time. Applying the methodology for West German labour markets, we find strong evidence for the existence of a long-run wage curve with spatial effects. Terms of use: Documents in

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Pacts for employment and competitiveness in Germany

Cited by 100 publications

References 3 publications

Investment under company-level pacts before and during the Great Recession

Investment under company-level pacts before and during the Great Recession

Towards an East German Wage Curve - Nuts Boundaries, Labour Market Regions and Unemployment Spillovers

Local and Spatial Cointegration in the Wage Curve -- A Spatial Panel Analysis for German Regions

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