Haucap, Justus; Pauly, Uwe; Wey, Christian - 2008
This paper offers a cartel explanation for the stability of German collective bargaining institutions.We show that a … dense net of legal safeguards has been yarned around the wage setting cartel. These measures make deviation by cartel … measures, which make wages more flexible, serve to further stabilize the labor cartel, while truly pro-competitive proposals …