Publication
Oct 2010
This paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, the authors find that works councils affect wage growth only in combination with collective bargaining. Wage adjustments to positive and negative economic shocks are not always symmetric. In contrast, wage growth in establishments without collective bargaining adjusts only to falling unemployment and is unaffected by rising unemployment.
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English (PDF, 29 pages, 634 KB) |
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Author | Hermann Gartner, Thorsten Schank, Claus Schnabel |
Series | Kiel Institute Working Papers |
Issue | 1654 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |