We analyze the welfare and employment effects of different wage bargaining regimes. Within the large firm search model, we show that collective bargaining affects employment via two channels. Collective bargaining exerts opposing effects on job creation and wage setting. Firms have a stronger...

This study analyzes employers' support for the introduction of minimum wages in order to improve their competitive position. Using a unique data set consisting of 800 firms in eight industries in the German service sector, we find some evidence that high-productivity employers support minimum...

This paper estimates the employment effects of industry-specific, collectively-bargained minimum wages in Germany for three occupations associated with the construction sector using a difference-in-differences approach. I propose a truly exogenous control group in contrast to the control group...