Collective Bargaining in Germany: Trends and Challenges

Lutz Bellmann, Christian Dustmann and Bernd Fitzenberger
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Lutz Bellmann: Institute for Employment Research (IAB), Nuremberg, Germany
Bernd Fitzenberger: Institute for Employment Research (IAB), Nuremberg, Germany

No 202604, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper examines the evolution, institutional structure, and current challenges of collective bargaining in Germany. Collective bargaining addresses labor market imperfections, redistributes productivity gains, and shapes working conditions. The German system is centered on industry-level agreements, complemented by firm-level agreements and voluntary adoption of industry-level bargaining outcomes by formally uncovered firms (“orientation”). It has historically supported cooperative labor-management relations, while allowing for flexibility during economic downturns. We document long-term declines in union density and bargaining coverage, partly mitigated by orientation. Moreover, coverage is lower among low-wage workers. We conclude by discussing the future of Germany’s collective bargaining institutions in the context of structural economic change and the growing role of the statutory minimum wage, and draw comparison between Germany and the US." (Author's abstract, IAB-Doku) ((en))

JEL-codes: J38 J51 J58 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2026-07-10
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https://doi.org/10.48720/IAB.DP.2604

Related works:
Working Paper: Collective Bargaining in Germany: Trends and Challenges (2026)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202604

DOI: 10.48720/IAB.DP.2604

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