This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...

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...

Der Beitrag untersucht die Verbreitung von Tarifverträgen in Dienstleistungsunternehmen sowie deren Wirkungen auf die Beschäftigungspolitik im Falle von Nachfrageschwankungen. Der empirische Teil basiert auf der ZEW/Creditreform Konjunkturumfrage bei unternehmensnahen...

Conventional theory predicts that productivity gains lead to pay hikes. Pay increases, however, can influence labor productivity. But what about in a corporatist economy? Focusing on Germany, we use an innovative technique developed by Geweke to disentangle the relationship between pay and...

Conventional theory predicts that productivity gains lead to pay hikes. Pay increases, however, can influence labor productivity. But what about in a corporatist economy? Focusing on Germany, we use an innovative technique developed by Geweke to disentangle the relationship between pay and...

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...

Labour market developments have Germany undergone two shocks: German reunification in the early 1990s, and the Hartz reforms in the early 2000s. They separated the German labour market into the traditional rather corporatist labour market segment, characterised by a high degree of coordination,...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor productivity of a firm, the more likely it is to opt for...

Comparing aggregate statistics and surveying selected empirical studies, this paper shows that the characteristics and results of labour markets in eastern and western Germany have become quite similar in some respects but still differ markedly in others even 25 years after unification. Whereas...

Comparing aggregate statistics and surveying selected empirical studies, this paper shows that the characteristics and results of labour markets in eastern and western Germany have become quite similar in some respects but still differ markedly in others even 25 years after unification. Whereas...