Arbeitspapier

Let's take bargaining models seriously: The decline in union power in Germany, 1992 - 2009

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5875

Classification
Wirtschaft
Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Trade Unions: Objectives, Structure, and Effects
Subject
trade union power
wage bargaining
labour share
Germany

Event
Geistige Schöpfung
(who)
Hirsch, Boris
Schnabel, Claus
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2011

Handle
URN
urn:nbn:de:101:1-201108093027
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Hirsch, Boris
  • Schnabel, Claus
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2011

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