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Tarifpolitik, Entgeltflexibilität und Beschäftigung in Ostdeutschland (Colletive bargaining policy, wage flexibility and employment in eastern Germany)

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  • Bonin, Holger

Abstract

"The paper explores wage setting practice in eastern Germany since unification. It gathers evidence to support the claim that economically non-viable collective agreements have fostered decentralized wage setting. First, we document the declining organization rates of both employers and employees, allowing a drift between collectively-agreed and actual wages. Second, we examine macroeconomic wage flexibility by estimating a switching regime model, in which the observed distribution of individual wage changes is generated by simultaneous processes of union, nominal or no wage rigidity. The results indicate that wages become more flexible during transition. Furthermore nominal wage rigidity, typical of decentralized bargaining, is much more common in eastern than in western Germany, while the opposite holds regarding union wage rigidity." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bonin, Holger, 2005. "Tarifpolitik, Entgeltflexibilität und Beschäftigung in Ostdeutschland (Colletive bargaining policy, wage flexibility and employment in eastern Germany)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 165-179.
    • Handle: RePEc:iab:iabzaf:v:38:i:2-3:p:165-179
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    References listed on IDEAS

    as
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    6. Jennifer Hunt, 2001. "Post-Unification Wage Growth in East Germany," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 190-195, February.
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    8. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
    9. Funke Michael & Strulik Holger, 2000. "Growth and Convergence in a Two-Region Model of Unified Germany," German Economic Review, De Gruyter, vol. 1(3), pages 363-384, August.
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