IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v228y2008i5-6p533-553.html
   My bibliography  Save this article

Company-Level Pacts for Employment

Author

Listed:
  • Bellmann Lutz

    (Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit, Regensburger Straße 106, 90327 Nürnberg, Germany. Phone)

  • Gerlach Knut

    (Institut für Arbeitsökonomie, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany)

  • Meyer Wolfgang

    (Institut für Sozialpolitik, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany)

Abstract

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.

Suggested Citation

  • Bellmann Lutz & Gerlach Knut & Meyer Wolfgang, 2008. "Company-Level Pacts for Employment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 533-553, October.
    • Handle: RePEc:jns:jbstat:v:228:y:2008:i:5-6:p:533-553
    DOI: 10.1515/jbnst-2008-5-608
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jbnst-2008-5-608
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jbnst-2008-5-608?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fitzenberger, Bernd & Franz, Wolfgang, 1999. "Industry-level wage bargaining : a partial rehabilitation ; the German experience," ZEW Discussion Papers 99-33, ZEW - Leibniz Centre for European Economic Research.
    2. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521468398, November.
    3. John T. Addison & Claus Schnabel & Joachim Wagner, 2006. "The (Parlous) State of German Unions," Working Paper Series in Economics 23, University of Lüneburg, Institute of Economics.
    4. Heidemann, Winfried, 2005. "Beschäftigungssicherung: Analyse und Handlungsempfehlungen. Betriebs- und Dienstvereinbarungen. 2., unveränderte Auflage," Study / edition der Hans-Böckler-Stiftung, Hans-Böckler-Stiftung, Düsseldorf, volume 8, number 8.
    5. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    6. Fitzenberger, Bernd & Franz, Wolfgang, 1999. "Der Flächentarifvertrag: Eine kritische Würdigung aus ökonomischer Sicht," ZEW Discussion Papers 99-57, ZEW - Leibniz Centre for European Economic Research.
    7. Peter Ellguth & Susanne Kohaut, 2008. "Ein Bund fuers Ueberleben? Betriebliche Vereinbarungen zur Beschaeftigungs- und Standortsicherung," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 15(3), pages 209-232.
    8. Hassel, Anke & Rehder, Britta, 2001. "Institutional change in the German wage bargaining system: The role of big companies," MPIfG Working Paper 01/9, Max Planck Institute for the Study of Societies.
    9. Hübler Olaf, 2005. "Sind betriebliche Bündnisse für Arbeit erfolgreich? / Are ln-plant Alliances for Job Security Successful?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(6), pages 630-652, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 182-209, May.
    2. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," IZA Discussion Papers 9323, Institute of Labor Economics (IZA).
    3. Hirsch, Boris & Schnabel, Claus, 2011. "Let's take bargaining models seriously: The decline in union power in Germany, 1992 - 2009," FAU Discussion Papers in Economics 10/2011, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    4. Tobias Brändle, 2017. "Flexible collective bargaining agreements: Still a moderating effect on works council behaviour?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(8), pages 1137-1153, December.
    5. János Köllo, 2011. "Hungary: Crisis Coupled with a Fiscal Squeeze – Effects on Inequality," Chapters, in: Daniel Vaughan-Whitehead (ed.), Work Inequalities in the Crisis, chapter 7, Edward Elgar Publishing.
    6. Boris Hirsch & Thomas Zwick, 2015. "How Selective Are Real Wage Cuts? A Micro-analysis Using Linked Employer–Employee Data," LABOUR, CEIS, vol. 29(4), pages 327-347, December.
    7. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2011. "Distributional Consequences of Labor-demand Shocks: The 2008-09 Recession in Germany," CESifo Working Paper Series 3403, CESifo.
    8. Vivian Carstensen, 2013. "The German Labor Market Miracle Revisited: Risk Elimination in Working Time Accounts," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 1(1), pages 19-38.
    9. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
    10. Bargain, O. & Herwig Immervoll & Andreas Peichl & Siegloch, S., 2010. "GINI DP 1: Distributional Consequences of Labor-Demand Adjustments to a Downturn. A Model-Based Approach with Application to Germany 2008-09," GINI Discussion Papers 1, AIAS, Amsterdam Institute for Advanced Labour Studies.
    11. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Contract Innovation in Germany: An Economic Evaluation of Pacts for Employment and Competitiveness," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 500-526, September.
    12. Felix Hüfner & Caroline Klein, 2012. "The German Labour Market: Preparing for the Future," OECD Economics Department Working Papers 983, OECD Publishing.
    13. Bellmann Lutz & Gerner Hans-Dieter, 2012. "Further Training and Company-Level Pacts for Employment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 98-115, April.
    14. Boris Hirsch & Claus Schnabel, 2014. "What can we Learn from Bargaining Models about Union Power? The Decline in Union Power in Germany, 1992–2009," Manchester School, University of Manchester, vol. 82(3), pages 347-362, June.
    15. Lutz Bellmann & Hans-Dieter Gerner & Olaf Hübler, 2014. "Effects of reciprocal concessions on employment and real capital," Economics Bulletin, AccessEcon, vol. 34(1), pages 494-509.
    16. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," IZA Discussion Papers 9323, Institute of Labor Economics (IZA).
    17. Lutz Bellmann, 2014. "Do in-plant alliances foster employment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-79, June.
    18. Uwe Jirjahn, 2015. "Research on Trade Unions and Collective Bargaining in Germany: The Contribution of Labor Economics," Research Papers in Economics 2015-10, University of Trier, Department of Economics.
    19. Lutz Bellmann, 2014. "Kontinuität und Veränderung des IAB-Betriebspanels [The development of the IAB establishment panel]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 5-26, March.
    20. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2012. "Distributional consequences of labor-demand shocks: the 2008–2009 recession in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 118-138, February.
    21. Görlitz Katja, 2010. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 186-207, April.
    22. Lutz Bellmann & Werner Widuckel, 2022. "In-plant alliances can mitigate economic crisis impacts," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-79, December.
    23. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute of Labor Economics (IZA).
    24. Köllő, János, 2010. "Vállalati reakciók a gazdasági válságra, 2008-2009 [Corporate reactions to the economic crisis, 2008-9]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1045-1064.
    25. Dietz, Martin & Stops, Michael & Walwei, Ulrich, 2012. "Securing Jobs in Times of Recession. The German Experience during the Financial Crisis 2008/2009/Asegurando los puestos de trabajo en tiempos de recesión. La experiencia alemana durante la crisis fina," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 59-100, Abril.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bellmann Lutz & Gerner Hans-Dieter, 2012. "Further Training and Company-Level Pacts for Employment in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 98-115, April.
    2. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, October.
    3. Fanti, Luciano & Gori, Luca, 2013. "Efficient bargaining versus right to manage: A stability analysis in a Cournot duopoly with trade unions," Economic Modelling, Elsevier, vol. 30(C), pages 205-211.
    4. Luca Gori & Luciano Fanti, 2009. "Right-to-manage unions endogenous growth and welfare," Economics Bulletin, AccessEcon, vol. 29(2), pages 903-917.
    5. Peter J. Luke & Mark E. Schaffer, 1999. "Wage Determination in Russia: An Econometric Investigation," CERT Discussion Papers 9908, Centre for Economic Reform and Transformation, Heriot Watt University.
    6. François Rycx & Ilan Tojerow, 2004. "Rent sharing and the gender wage gap in Belgium," International Journal of Manpower, Emerald Group Publishing Limited, vol. 25(3/4), pages 279-299, April.
    7. Giuseppe Bognetti & Michele Santoni, 2010. "Can domestic unions gain from offshoring?," Journal of Economics, Springer, vol. 100(1), pages 51-67, May.
    8. Uwe Jirjahn, 2015. "Research on Trade Unions and Collective Bargaining in Germany: The Contribution of Labor Economics," Research Papers in Economics 2015-10, University of Trier, Department of Economics.
    9. Puhani, Patrick A., 2001. "Wage rigidities in Western Germany? Microeconometric evidence from the 1990s," ZEW Discussion Papers 01-36, ZEW - Leibniz Centre for European Economic Research.
    10. Sabien Dobbelaere & Jacques Mairesse, 2013. "Panel data estimates of the production function and product and labor market imperfections," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(1), pages 1-46, January.
    11. Addison, John T. & Teixeira, Paulino & Evers, Katalin & Bellmann, Lutz, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," IZA Discussion Papers 9323, Institute of Labor Economics (IZA).
    12. Matthias Strifler & Thomas Beissinger, 2016. "Fairness Considerations in Labor Union Wage Setting – A Theoretical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 303-330, July.
    13. Robert Plasman & François Rycx & Ilan Tojerow, 2006. "Industry wage differentials, unobserved ability, and rent-sharing: evidence from matched employer-employee, 1992-2005," DULBEA Working Papers 06-14.RS, ULB -- Universite Libre de Bruxelles.
    14. Nadja Dwenger & Pia Rattenhuber & Viktor Steiner, 2019. "Sharing the Burden? Empirical Evidence on Corporate Tax Incidence," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 107-140, November.
    15. Marie-Claire Villeval & Manfred Konigstein, 2005. "The Choice of the Agenda in Labor Negotiations: efficiency and behavioral considerations," Working Papers 0508, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    16. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2013. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(2), pages 182-209, May.
    17. Kai-Uwe Kuuhn & A. Jorge Padilla, 2002. "Union Power, Replacement and Labour Market Dynamics," Economic Journal, Royal Economic Society, vol. 112(479), pages 317-343, April.
    18. John T Addison & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2017. "The demise of a model? The state of collective bargaining and worker representation in Germany," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(2), pages 193-234, May.
    19. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    20. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra‐Firm Wage Dispersion Among Blue‐Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:228:y:2008:i:5-6:p:533-553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.