The German Model of Industrial Relations: Balancing Flexibility and Collective Action

Jäger, Simon; Noy, Shakked; Schoefer, Benjamin

doi:10.2139/ssrn.4196273

Cited by 1 publication

(1 citation statement)

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“…See e.g. Jäger et al (2022) for a detailed up-to-date description and analysis of the German system of collective bargaining and firm-level worker codetermination. The resulting increased flexibility of labour market institutions, coupled with falling participation of smaller firms, partly explains the losses at the bottom of the distribution and an increase in competitiveness which transformed Germany, according to some commentators, from "sick man" of Europe to a "superstar" (Dustmann et al, 2014) by 2010.…”

Section: Data and Estimationmentioning

confidence: 99%

Spatial Income Inequality

Schluter

Trede

2023

Preprint

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Income inequality in Germany has increased dramatically. Measuring inequality locally at the level of cities annually since 1985, we find that behind this development is the rapidly worsening inequality in the largest cities, driven by increasing income polarisation. In the cross-section, local income inequality rises substantially in city size, and this city-size inequality penalty has increased steadily since1985, reaching an elasticity of .2 in 2010. Inequality decompositions reveal that overall income inequality is almost fully explained by the within-locations component, which in turn is driven by the largest cities. The worsening inequality in the largest cities is amplified by their greater population weight. Examining the local income distributions directly reveals that this is due to increasing income polarisation that is strongest in the largest places. Both upper and lower distributional tails become heavier over time, and are the heaviest in the largest cities. We establish these results using a large and spatially representative administrative data set, and address the top-coding problem in these data using a parametric distribution approach that outperforms standard imputations. JEL Codes: D31 , D63 , J31 , R23

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Section: Data and Estimationmentioning

confidence: 99%