This paper offers a cartel explanation for the stability of German collective bargaining institutions.We show that a dense net of legal safeguards has been yarned around the wage setting cartel. These measures make deviation by cartel insiders less attractive and simultaneously erect entry...

The Economy, Crises, and the Labor Market Can Institutions Serve as a Protective Shield for Employment? Edited by Klaus F. Zimmermann and Christian Wey Duncker & Humblot • Berlin ...

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...