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Company-Level Pacts for Employment

Bellmann Lutz (), Gerlach Knut () and Meyer Wolfgang ()
Additional contact information
Bellmann Lutz: Institut für Arbeitsmarkt- und Berufsforschung, Bundesagentur für Arbeit, Regensburger Straße 106, 90327 Nürnberg, Germany. Phone
Gerlach Knut: Institut für Arbeitsökonomie, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany
Meyer Wolfgang: Institut für Sozialpolitik, Wirtschaftswissenschaftliche Fakultät, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2008, vol. 228, issue 5-6, 533-553

Abstract: Company-level pacts for employment are agreements between management and the company's work force that are characterized by concessions from both bargaining partners. Employees agree to company-specific deviations from a collective contract that include negative components like reduced wages or prolonged working time in exchange for employment guarantees or investment programs. These pacts are negotiated to avoid or mitigate a decline of employment or to improve the long-term competitiveness of the firm. Based on the IAB Establishment Panel of the years 2004 to 2007 the employment consequences of these pacts are analyzed. It can be shown that company-level pacts tend to correlate negatively with employment growth. This finding basically holds if the endogeneity of pacts is taken into account.

Keywords: Collective contracts; decentralization of wage-setting; employment effects (search for similar items in EconPapers)
Date: 2008
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