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Is the Erosion Thesis Overblown? Alignment from Without in Germany

Author

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  • John T. Addison

    (Moore School of Business, University of South Carolina, U.S.A.; The Rimini Centre for Economic Analysis, Italy)

  • Paulino Teixeira

    (University of Coimbra and GEMF, Portugal)

  • Katalin Evers

    (Institut für Arbeitsmarkt- und Berufsforschung, Germany)

  • Lutz Bellmann

    (Friedrich-Alexander-Universität Erlangen-Nürnberg and Institut für Arbeitsmarkt- und Berufsforschung, Germany)

Abstract

It is sometimes alleged that collective bargaining coverage in Germany is understated because uncovered firms ‘orient’ 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.

Suggested Citation

  • John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2015. "Is the Erosion Thesis Overblown? Alignment from Without in Germany," Working Paper series 15-06, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:15-06
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    References listed on IDEAS

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    8. Ellguth, Peter & Kohaut, Susanne, 2012. "Tarifbindung und betriebliche Interessenvertretung: Aktuelle Ergebnisse aus dem IAB-Betriebspanel 2011," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(4), pages 297-305.
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    Cited by:

    1. Tobias Brändle & Laszlo Goerke, 2018. "The one constant: a causal effect of collective bargaining on employment growth? Evidence from German linked‐employer‐employee data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(5), pages 445-478, November.
    2. Fitzenberger Bernd & Sommerfeld Katrin, 2016. "A Sequential Decomposition of the Drop in Collective Bargaining Coverage," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(1), pages 37-69, February.
    3. Pereira, João & Ramos, Raul & Martins, Pedro S., 2024. "Wage cyclicality and labour market institutions," GLO Discussion Paper Series 1469, Global Labor Organization (GLO).
    4. Mario Bossler, 2019. "The Rise in Orientation at Collective Bargaining Without a Formal Contract," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(1), pages 17-45, January.
    5. Clément Brébion, 2021. "The works council wage premium in Germany: a case of strategic discrimination?," Working Papers halshs-03100169, HAL.
    6. Baumgarten, Daniel & Lehwald, Sybille, 2019. "Trade Exposure and the Decline in Collective Bargaining: Evidence From Germany," Rationality and Competition Discussion Paper Series 165, CRC TRR 190 Rationality and Competition.
    7. Oberfichtner Michael & Schnabel Claus, 2019. "The German Model of Industrial Relations: (Where) Does It Still Exist?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 5-37, January.
    8. Martin Behrens & Andreas Pekarek, 2023. "Delivering the goods? German industrial relations institutions during the COVID‐19 crisis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(2), pages 126-144, April.
    9. Lübker, Malte & Schulten, Thorsten, 2023. "Tarifbindung in den Bundesländern: Entwicklungslinien und Auswirkungen auf die Beschäftigten," Analysen zur Tarifpolitik 96, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    10. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    11. Simon Jäger & Shakked Noy & Benjamin Schoefer, 2022. "The German Model of Industrial Relations: Balancing Flexibility and Collective Action," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 53-80, Fall.
    12. John Addison & Paulino Teixeira & Jens Stephani & Lutz Bellmann, 2015. "Declining Unions and the Coverage Wage Gap: Can German Unions Still Cut It?," Journal of Labor Research, Springer, vol. 36(3), pages 301-317, September.
    13. Mario Bossler & Gregor Geis & Jens Stegmaier, 2018. "Comparing survey data with an official administrative population: assessing sample-selectivity in the IAB Establishment Panel," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(2), pages 899-920, March.
    14. Susan HAYTER & Jelle VISSER, 2021. "Making collective bargaining more inclusive: The role of extension," International Labour Review, International Labour Organization, vol. 160(2), pages 169-195, June.
    15. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2015. "Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance," GEMF Working Papers 2015-18, GEMF, Faculty of Economics, University of Coimbra.
    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. Lübker, Malte & Schulten, Thorsten, 2022. "Tarifbindung in den Bundesländern: Entwicklungslinien und Auswirkungen auf die Beschäftigten. 4., aktualisierte Auflage," Analysen zur Tarifpolitik 90, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    18. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    19. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Collective Bargaining and Innovation in Germany: A Case of Cooperative Industrial Relations?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 73-121, January.
    20. Oberfichtner Michael & Schnabel Claus, 2019. "The German Model of Industrial Relations: (Where) Does It Still Exist?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 5-37, January.
    21. Lübker, Malte & Schulten, Thorsten, 2021. "Tarifbindung in den Bundesländern: Entwicklungslinien und Auswirkungen auf die Beschäftigten. 3., aktualisierte Auflage," Analysen zur Tarifpolitik 89, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    22. Lübker, Malte & Schulten, Thorsten, 2020. "Tarifbindung in den Bundesländern: Entwicklungslinien und Auswirkungen auf die Beschäftigten. 2., aktualisierte Auflage," Analysen zur Tarifpolitik 87, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    23. Schröder, Doris & Lübker, Malte & Schulten, Thorsten, 2021. "Tarifverträge und Tarifflucht in Mecklenburg-Vorpommern," WSI Studies 25, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.

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