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...

We analyze the bargaining problem of an incumbent firm and a union when the wage contract becomes generally binding. Our main application relates to competition among operators of mail delivery networks. We describe the Deutsche Post case which highlights the raising rivals' costs incentive and...

We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that...

I use the universe of tax returns in Germany and a regression kink design to estimate the impact of the benefit amount available to high-earning women after their first childbirth on subsequent within-couple earnings inequality. Lower benefit amounts result in a reduced earnings gap that...

Over the past decades, the share of very young children in daycare has increased significantly in many OECD countries, including Germany. Despite the relevance of child health for child development and later life success, the effect of early daycare attendance on health has received little...

Our paper contributes to the literature studying how household conditions can influence children's development, focusing on the type of family model where children grow up, defined on the basis of parental employment status and relative earnings. The traditional "male-breadwinner" model is no...

In contemporary households, women often shoulder most organisation and caregiving responsibilities leading them to play a crucial role in family dynamics. While previous research has established that public early childcare affects child outcomes and maternal employment, less attention has been...

Negative effects of job loss on adults such as considerable fall in income have long been examined. If job loss has negative consequences for adults, it may spread to their children. But potential effects on children's non-cognitive skills and the related mechanisms have been less examined. This...

Financial support for families with children implies inherent trade-offs some of which are less obvious than others. In the end these trade-offs determine the effectiveness of policy with respect to the material situation of families and employment of their parents. We analyse several kinds of...

We examine the impact of family income during childhood on the type of secondary school that German children attend, a good indicator of their lifetime socioeconomic attainment. By contrast with several US child outcome studies, we find that late-childhood income is a more important determinant...