German Trade Unions After Unification: Third Degree Wage Discriminating Monopolists?

Michael Burda and Michael Funke

No 573, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: After unification, real wages in Eastern Germany rose rapidly relative to labour productivity despite high and rising levels of unemployment. This substantial increase in wage levels relative to those in Western Germany is difficult to explain without recourse to models of union behaviour or collective bargaining. This paper applies and extends such models and evaluates plausible explanations for recent short-run wage developments in the ex-GDR.

Keywords: German Unification; Labour Unions; Migration; Wage Determination (search for similar items in EconPapers)
JEL-codes: E24 J51 J61 O50 (search for similar items in EconPapers)
Date: 1991-08
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Citations: View citations in EconPapers (20)

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Journal Article: German trade unions after unification — Third degree wage discriminating monopolists? (1993)
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