At the level of theory, the effect of collective bargaining on innovation is disputed. The U.S. evidence clearly points to adverse effects, but other-country experience suggests that certain industrial relations systems, or the wider regulatory apparatus, might even tip the balance in favor of...

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...