Arbeitspapier
The one constant: A causal effect of collective bargaining on employment growth? Evidence from German linked-employer-employee data
A large number of articles have analysed 'the one constant' in the economic effects of trade unions, namely that union bargaining reduces employment growth by two to four percentage points per year. Evidence is, however, mostly related to Anglo-Saxon countries. We investigate whether a different institutional setting might lead to a different outcome, making the constant a variable entity. We use linkedemployer-employee data for Germany and analyse the effect of collective bargaining coverage on employment growth in German plants. We find a robust and negative correlation between being covered by a sector-wide bargaining agreement or firmlevel contract and employment growth per annum of about 0.8 percentage points. Using various approaches, however, we cannot establish a causal interpretation of the effects, suggesting that the cross-section results are driven by selection.
- Language
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Englisch
- Bibliographic citation
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Series: IAAEU Discussion Paper Series in Economics ; No. 01/2015
- Classification
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Wirtschaft
Labor Demand
Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
Labor-Management Relations; Industrial Jurisprudence
Labor Turnover; Vacancies; Layoffs
- Subject
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collective bargaining
employment growth
job flows
trade unions
- Event
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Geistige Schöpfung
- (who)
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Brändle, Tobias
Goerke, Laszlo
- Event
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Veröffentlichung
- (who)
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University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
- (where)
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Trier
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brändle, Tobias
- Goerke, Laszlo
- University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
Time of origin
- 2015