Hirsch, Boris; Merkl, Christian; Müller, Steffen; … - Institut für Weltwirtschaft (IfW) - 2014
their preferred wage formation regime. Our theoretical framework predicts, first, that the larger the total factor … productivity of a firm, the more likely it is to opt for centralized wage formation where it can hide behind less productive firms … setting due to labor cost and straitjacket effects. As firms in Germany are allowed to choose their wage formation regime, we …