What Can We Learn from Bargaining Models About Union Power? The Decline in Union Power in Germany, 1992–2009

16 Pages Posted: 12 Apr 2014

See all articles by Boris Hirsch

Boris Hirsch

University of Erlangen-Nuremberg

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Date Written: June 2014

Abstract

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 taking account of taxation, unemployment benefits, and the labour market situation and confronts this indicator with annual data for Germany. The results show that union power did not change much from 1992 to 2002 but fell markedly (by about one‐third) from 2002 to 2007 in the aftermath of substantial labour market reforms.

Suggested Citation

Hirsch, Boris and Schnabel, Claus, What Can We Learn from Bargaining Models About Union Power? The Decline in Union Power in Germany, 1992–2009 (June 2014). The Manchester School, Vol. 82, Issue 3, pp. 347-362, 2014, Available at SSRN: https://ssrn.com/abstract=2424094 or http://dx.doi.org/10.1111/manc.12028

Boris Hirsch (Contact Author)

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

HOME PAGE: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english/hirsch_e.htm

Claus Schnabel

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
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D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

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