Details
| Original language | English |
|---|---|
| Pages (from-to) | 269-288 |
| Number of pages | 20 |
| Journal | Economic and industrial democracy |
| Volume | 42 |
| Issue number | 2 |
| Early online date | 23 Mar 2018 |
| Publication status | Published - May 2021 |
Abstract
This article assesses the role of the recent introduction of the minimum wage for collective bargaining coverage and works councils in Germany. The new minimum wage was initiated to strengthen German tariff autonomy, but effects on collective bargaining coverage are theoretically ambivalent. Using the IAB Establishment Panel, descriptive regressions show that firms covered by a collective bargaining contract are much less likely affected by the minimum wage. To construct a counterfactual for the group of affected establishments, the authors apply an entropy balancing procedure. Subsequent difference-in-differences estimates reveal a slight decline in collective bargaining participation, which falls short of statistical significance. Although the effect on opting into collective bargaining is even slightly positive, the authors observe a significant decrease in coverage through firms that exit collective agreements.
Keywords
- Collective bargaining, industrial relations, works councils
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Business, Management and Accounting(all)
- Strategy and Management
- Business, Management and Accounting(all)
- Organizational Behavior and Human Resource Management
- Business, Management and Accounting(all)
- Management of Technology and Innovation
Sustainable Development Goals
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In: Economic and industrial democracy, Vol. 42, No. 2, 05.2021, p. 269-288.
Research output: Contribution to journal › Article › Research › peer review
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TY - JOUR
T1 - Collective bargaining coverage, works councils and the new German minimum wage
AU - Bellmann, Lutz
AU - Bossler, Mario
AU - Gerner, Hans Dieter
AU - Hübler, Olaf
N1 - Publisher Copyright: © The Author(s) 2018.
PY - 2021/5
Y1 - 2021/5
N2 - This article assesses the role of the recent introduction of the minimum wage for collective bargaining coverage and works councils in Germany. The new minimum wage was initiated to strengthen German tariff autonomy, but effects on collective bargaining coverage are theoretically ambivalent. Using the IAB Establishment Panel, descriptive regressions show that firms covered by a collective bargaining contract are much less likely affected by the minimum wage. To construct a counterfactual for the group of affected establishments, the authors apply an entropy balancing procedure. Subsequent difference-in-differences estimates reveal a slight decline in collective bargaining participation, which falls short of statistical significance. Although the effect on opting into collective bargaining is even slightly positive, the authors observe a significant decrease in coverage through firms that exit collective agreements.
AB - This article assesses the role of the recent introduction of the minimum wage for collective bargaining coverage and works councils in Germany. The new minimum wage was initiated to strengthen German tariff autonomy, but effects on collective bargaining coverage are theoretically ambivalent. Using the IAB Establishment Panel, descriptive regressions show that firms covered by a collective bargaining contract are much less likely affected by the minimum wage. To construct a counterfactual for the group of affected establishments, the authors apply an entropy balancing procedure. Subsequent difference-in-differences estimates reveal a slight decline in collective bargaining participation, which falls short of statistical significance. Although the effect on opting into collective bargaining is even slightly positive, the authors observe a significant decrease in coverage through firms that exit collective agreements.
KW - Collective bargaining
KW - industrial relations
KW - works councils
UR - http://www.scopus.com/inward/record.url?scp=85044537855&partnerID=8YFLogxK
U2 - 10.1177/0143831X18762304
DO - 10.1177/0143831X18762304
M3 - Article
AN - SCOPUS:85044537855
VL - 42
SP - 269
EP - 288
JO - Economic and industrial democracy
JF - Economic and industrial democracy
SN - 0143-831X
IS - 2
ER -