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Title:Collective wage agreements and the adjustment of workers and hours in German service firms PDF Logo
Authors:Kaiser, Ulrich
Pfeiffer, Friedhelm
Issue Date:2000
Series/Report no.:ZEW Discussion Papers 00-33
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.
Subjects:collective wage agreements
demand fluctuations and adjustment costs
random effects ordered probit model
business-related services
JEL:J30
J50
C33
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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