6533b85ffe1ef96bd12c1d6b
RESEARCH PRODUCT
Wage Cyclicality under Different Regimes of Industrial Relations
Thorsten SchankClaus SchnabelHermann Gartnersubject
Organizational Behavior and Human Resource ManagementLabour economicsReallohnKonjunkturStrategy and Managementmedia_common.quotation_subjectwage cyclicality wage bargaining works council GermanyWageTarifpolitikwage bargainingCollective bargainingManagement of Technology and InnovationEfficiency wageGermanyEconomicsddc:330J31J53Industrial relationsDeutschlandmedia_commonE32Mitbestimmungjel:E32works counciljel:J31jel:J53Arbeitsbeziehungenwage cyclicalityIndustrial relationsUnemploymentWage growthwage cyclicalitywage bargainingworks councilGermanySchätzungdescription
Since there is scant evidence on the role of industrial relations in wage cyclicality, this paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, we find that works councils affect wage growth only in combination with collective bargaining. Wage adjustments to positive and negative economic shocks are not always symmetric. Only under sectoral bargaining there is a (nearly symmetric) reaction to rising and falling unemployment. In contrast, wage growth in establishments without collective bargaining adjusts only to falling unemployment and is unaffected by rising unemployment.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2010-10-01 |