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Contract Innovation in Germany: An Economic Evaluation of Pacts for Employment and Competitiveness

Addison, J.T.; Teixeira, P.; Evers, K.; Bellmann, L.

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Authors

P. Teixeira

K. Evers

L. Bellmann



Abstract

Pacts for employment and competitiveness are an integral component of the ongoing process of decentralization of collective bargaining in Germany, a phenomenon that has been hailed as key to that nation's economic resurgence. Yet little is known about the effects of pacts on firm performance. The evidence largely pertains to employment and is decidedly mixed. This article investigates the association between pacts and six outcome indicators using a framework in which the controls comprise establishments that negotiated over pacts but failed to reach agreement on their implementation. An extensive set of robustness checks are run to test the sensitivity of the key findings of the model. There is no suggestion of pacts negatively impacting any of the selected measures of establishment performance. Rather, the evidence points to some positive short- and medium-run effects on firm average wages and possibly employment and innovation as well.

Journal Article Type Article
Acceptance Date Sep 16, 2016
Online Publication Date Nov 11, 2016
Publication Date Sep 1, 2017
Deposit Date Oct 3, 2016
Publicly Available Date Nov 11, 2018
Journal British Journal of Industrial Relations
Print ISSN 0007-1080
Electronic ISSN 1467-8543
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 55
Issue 3
Pages 500-526
DOI https://doi.org/10.1111/bjir.12219
Public URL https://durham-repository.worktribe.com/output/1403596

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Accepted Journal Article (458 Kb)
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Copyright Statement
This is the accepted version of the following article: Addison, J.T., Teixeira, P., Evers, K. & Bellmann, L. (2017). Contract Innovation in Germany: An Economic Evaluation of Pacts for Employment and Competitiveness. British Journal of Industrial Relations, 55(3): 500-526, which has been published in final form at https://doi.org/10.1111/bjir.12219. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.





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