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Slip Sliding Away: Further Union Decline in Germany and Britain
Addison, John T.; Bryson, Alex; Teixeira, Paulino; Pahnke, AndréThis paper presents the first comparative analysis of the decline in collective bargaining in two European countries where that decline has been most pronounced. Using workplace-level data and a common model, we present decompositions of changes in collective bargaining and worker representation in the private sector in Germany and Britain over the period 1998-2004. In both countries within-effects dominate com...
The Extent of Collective Bargaining and Workplace Representation: Transitions b...
Addison, John T.; Bryson, Alex; Teixeira, Paulino; Pahnke, André; Bellmanns, LutzIndustrial relations are in flux in many nations, perhaps most notably in Germany and Britain. That said, comparatively little is known in any detail of the changing pattern of the institutions of collective bargaining and worker representation in Germany and still less in both countries about firm transitions between these institutions over time. The present paper maps changes in the importance of the key inst...
Rent Seeking at Plant Level: An Application of the Card-de la Rica Tenure Model...
Addison, John T.; Teixeira, Paulino; Zwick, ThomasLow-skilled workers enjoy a large wage advantage in German works council establishments. Since job tenure is also longer for these workers, one explanation might be rent-seeking. If the premium is a compensating wage differential (or a return to unmeasured ability), it should not lead to higher tenure; whereas if it is (partly) rent, lower quits should lead to longer tenure at plants with works councils. Our an...
A Note on the Determinants and Consequences of Outsourcing Using German Data
Addison, John T.; Bellmann, Lutz; Pahnke, André; Teixeira, PaulinoUsing German data from the Institute for Employment Research Establishment Panel, this paper constructs two main measures of outsourcing and examines their determinants and consequences for employment. There are some commonalities in the correlates of the two measures of outsourcing, as well as agreement on the absence of adverse employment effects across all industries. For one specification, however, some neg...
The Impact of Works Councils on Wages
Addison, John T.; Teixeira, Paulino; Zwick, ThomasThis paper investigates for the first time the effect of works councils on the anatomy of wages, using matched employer-employee data from the German LIAB for 2001. We find that works councils are associated with higher earnings. The wage premium is roughly comparable with the combined effect of sectoral and plant collective bargaining proper. This result persists after taking account of worker and establishmen...
Does the Quality of Industrial Relations Matter for the Macro Economy? A Cross-...
Addison, John T.; Teixeira, PaulinoUsing international data, we investigate whether the quality of industrial relations matters for the macro economy. We measure industrial relations inversely by strikes – which proxy we cross-check with an industrial relations reputation indicator – and our macro performance outcome is the unemployment rate. Independent of the role of other institutions, good industrial relations do seem to matter: greater stri...
Employment adjustment in two countries with poor reputations: Analysis of aggre...
Addison, John T.; Teixeira, PaulinoThis paper supplements aggregate time-series analysis of the speed of employment adjustment with evidence from firm panel and flow data for two countries – Portugal and Germany – sharing unenviable labor market reputations. The Portuguese labor market is often portrayed as terminally inert, while that of Germany as badly ailing. We report broad consistency in the results across data sets in favor of Portugal. I...
The Demand for Labor: An Analysis Using Matched Employer-Employee Data from the...
Addison, John T.; Bellmann, Lutz; Schank, Thorsten; Teixeira, PaulinoThis paper uses matched employee-employer LIAB data to provide panel estimates of the structure of labor demand in Germany, 1993-2002, distinguishing between highly skilled, skilled, and unskilled labor and between the manufacturing and service sectors. Reflecting current preoccupations, our demand analysis seeks also to accommodate the impact of technology and trade in addition to wages. The bottom-line intere...
The Effect of Works Councils on Employment Change
Addison, John T.; Teixeira, PaulinoDespite recent changes in the relationship between unionism and various indicators of firm performance, there is one seeming constant in the Anglophone countries: unions at the workplace are associated with reduced employment growth of around -2.5% a year. Using German data, we examine the impact of the works council – that country’s form of workplace representation – on employment change, 1993-2001. The German...
Technology, Employment and Wages
Addison, John T.; Teixeira, PaulinoThis paper examines the contribution of technological change to changes in the structure of relative employment and wages. Even if the nature of demand-side forces is fairly clear – international trade being of secondary importance because of the modest size of the between-industry employment shifts – the identification of the fundamental causes of skill-biased technological change, the techniques involved, and...
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