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Title:Let's take bargaining models seriously: The decline in union power in Germany, 1992 - 2009 PDF Logo
Authors:Hirsch, Boris
Schnabel, Claus
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5875
Abstract:Building on the right-to-manage model of collective bargaining, this paper tries to infer union power from the observed results in wage setting. It derives a time-varying indicator of union strength and confronts it with annual data for Germany. The results show that union power was relatively stable in the 1990s but fell substantially (by almost one-third) from 1999 to 2007. Two-thirds of this fall in union power follow from the reduction in the labour share relative to the capital share whereas changes in the gap between the net wage and the income when unemployed account for the remaining third.
Subjects:trade union power
wage bargaining
labour share
Germany
JEL:J50
J51
Persistent Identifier of the first edition:urn:nbn:de:101:1-201108093027
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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