Trade Exposure and the Decline in Collective Bargaining: Evidence From Germany

Daniel Baumgarten and Sybille Lehwald

No 165, Rationality and Competition Discussion Paper Series from CRC TRR 190 Rationality and Competition

Abstract: We analyze the effect of the increase in trade exposure induced by the rise of China and the transformation of Eastern Europe on collective bargaining coverage of German plants in the period 1996-2008. We exploit cross-industry variation in trade exposure and use trade flows of other high-income countries as instruments for German trade exposure. We find that increased import exposure has led to an increase in the probability of German plants leaving industry-wide bargaining agreements, accounting for about one fifth of the overall decline in the German manufacturing sector. The effect is most pronounced for small and medium-sized plants.

Keywords: international trade; import competition; collective bargaining (search for similar items in EconPapers)
JEL-codes: F16 J51 (search for similar items in EconPapers)
Date: 2019-07-11
New Economics Papers: this item is included in nep-eur, nep-int and nep-lab
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Citations: View citations in EconPapers (12)

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Working Paper: Trade Exposure and the Decline in Collective Bargaining: Evidence from Germany (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:rco:dpaper:165

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