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A Cartel Analysis of the German Labor Institutions and Its Implications for Labor Market Reforms

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dc.creator Haucap, Justus
dc.creator Pauly, Uwe
dc.creator Wey, Christian
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:30Z
dc.date.available 2013-10-16T07:00:30Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18544
dc.identifier ppn:523980760
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18544
dc.description In this paper we apply standard cartel theory to identify the major institutional stabilizers of Germany?s area tariff system of collective bargaining between a single industry union and the industry?s employers association. Our cartel analysis allows us to demonstrate that recent labor policy reforms that intend to make labor markets more ?flexible? further serve to stabilize the labor cartel while other pro-competitive proposals have failed. We argue that the pro-competitive recommendations failed exactly because of their destabilizing effects on insiders? incentives to stay in the labor cartel. We propose regulatory measures for injecting competition into Germany?s labor markets that focus on the creation of new options for firms and workers outside the existing area tariff system; in particular, by liberalizing existing barriers for the establishment of a fully tariff-enabled union. Such an endeavor must go hand in hand with the institutionalization of a competition policy framework for labor market disputes as any destabilizing policy inevitably provokes counter measures of the incumbent labor cartel so as to protect their dominance vis-?-vis outsider competition.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 651
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject K31
dc.subject J52
dc.subject L12
dc.subject ddc:330
dc.subject Union
dc.subject Collective Bargaining
dc.subject Cartel Stability
dc.subject Labor Market Reforms
dc.subject Tarifpolitik
dc.subject Lohnverhandlungen
dc.subject Kartell
dc.subject Insider-Outsider-Modell
dc.subject Arbeitsmarktflexibilisierung
dc.subject Deutschland
dc.title A Cartel Analysis of the German Labor Institutions and Its Implications for Labor Market Reforms
dc.type doc-type:workingPaper


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