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Collective wage agreements and the adjustment of workers and hours in German service firms

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  • Kaiser, Ulrich
  • Pfeiffer, Friedhelm

Abstract

There is a growing concern about collective wage agreement and employment dynamics in Germany. In this paper, evidence is provided on the way collective wage agreements affect the adjustment of working hours, employment and other production factors when firms from the service sector are faced with demand shocks. The estimation results indicate that collective wage agreements significantly influence firms' employment policies. Enrolments and the employment of free-lance collaborators are negatively affected while the probability of using short-term employment contracts as a reaction to demand shocks is positively influenced. No significant effect on the probability of dismissing workers has been found.

Suggested Citation

  • Kaiser, Ulrich & Pfeiffer, Friedhelm, 2000. "Collective wage agreements and the adjustment of workers and hours in German service firms," ZEW Discussion Papers 00-33, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5316
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    References listed on IDEAS

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    1. Dieter Sadowski & Uschi Backes-Gellner & Bernd Frick, 1995. "Works Councils: Barriers or Boosts for the Competitiveness of German Firms?," British Journal of Industrial Relations, London School of Economics, vol. 33(3), pages 493-513, September.
    2. 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.
    3. Kaiser, Ulrich & Kreuter, Markus & Niggemann, Hiltrud, 2000. "The ZEW - Creditreform business survey in the business-related services sector : sampling frame, stratification, expansion and results," ZEW Discussion Papers 00-22, ZEW - Leibniz Centre for European Economic Research.
    4. Klodt, Henning & Maurer, Rainer & Schimmelpfennig, Axel, 1997. "Tertiarisierung in der deutschen Wirtschaft," Open Access Publications from Kiel Institute for the World Economy 959, Kiel Institute for the World Economy (IfW Kiel).
    5. Daniel S. Hamermesh & Gerard A. Pfann, 1996. "Adjustment Costs in Factor Demand," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1264-1292, September.
    6. John Haltiwanger & Steven J. Davis, 1999. "On the Driving Forces behind Cyclical Movements in Employment and Job Reallocation," American Economic Review, American Economic Association, vol. 89(5), pages 1234-1258, December.
    7. Blundell, Richard & Laisney, Francois & Lechner, Michael, 1993. "Alternative Interpretations of Hours Information in an Econometric Model of Labour Supply," Empirical Economics, Springer, vol. 18(3), pages 393-415.
    8. Pfeiffer, Friedhelm, 2000. "Training and individual performance in Europe: evidence from microeconometric studies," ZEW Discussion Papers 00-28, ZEW - Leibniz Centre for European Economic Research.
    9. Hausman, Jerry A. & Lo, Andrew W. & MacKinlay, A. Craig, 1992. "An ordered probit analysis of transaction stock prices," Journal of Financial Economics, Elsevier, vol. 31(3), pages 319-379, June.
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    Citations

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    Cited by:

    1. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    2. Boockmann, Bernhard & Hagen, Tobias, 2001. "The use of flexible working contracts in West Germany: evidence from an establishment panel," ZEW Discussion Papers 01-33, ZEW - Leibniz Centre for European Economic Research.
    3. Kaiser, Ulrich & Szczesny, Andrea, 2000. "Einfache ökonometrische Verfahren für die Kreditrisikomessung," CoFE Discussion Papers 00/28, University of Konstanz, Center of Finance and Econometrics (CoFE).
    4. Kaiser, Ulrich & Pohlmeier, Winfried, 2000. "Efficient Bargaining and the Skill-Structure of Wages and Employment," CoFE Discussion Papers 00/24, University of Konstanz, Center of Finance and Econometrics (CoFE).
    5. Smirnych, L. I. & Wörgötter, Andreas, 2016. "The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia," ECON WPS - Working Papers in Economic Theory and Policy 09/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.

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    More about this item

    Keywords

    collective wage agreements; demand fluctuations and adjustment costs; random effects ordered probit model; business-related services;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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