Decentralising Wage Bargaining in Germany - a Way to Increase Employment?

33 Pages Posted: 10 Nov 2003

See all articles by Wolfgang Ochel

Wolfgang Ochel

University of Munich - Ifo Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: November 2003

Abstract

The area-wide wage agreement is at the centre of Germany's system of collective bargaining. In recent years, however, there has been a tendency towards the decentralisation of collective bargaining. Individual wage agreements have led to more moderate wage developments, whilst wage agreements with individual firms, and agreements at the production unit level have not had this moderating effect. On the other hand, collective bargaining has become more flexible. The further decentralisation of collective bargaining gives rise to objections based in constitutional law and to the resistance of employees and (in part) also of employers.

JEL Classification: J58, J59

Suggested Citation

Ochel, Wolfgang, Decentralising Wage Bargaining in Germany - a Way to Increase Employment? (November 2003). CESifo Working Paper Series No. 1069. Available at SSRN: https://ssrn.com/abstract=466061

Wolfgang Ochel (Contact Author)

University of Munich - Ifo Institute for Economic Research ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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