This paper is the first to show theoretically and empirically how firms' production technology affects the choice of 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...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of 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...

Trade unions and employers' associations play an important role in Germany not only in wage setting, but also in social policy and labour market regulation. While the majority of companies are organised in employers' associations, less than one fifth of employees are still members of a trade...

Trade unions and employers' associations play an important role in Germany not only in wage setting, but also in social policy and labour market regulation. While the majority of companies are organised in employers' associations, less than one fifth of employees are still members of a trade...

Employment relationships are embedded in a network of social norms that provide an implicit framework for desired behaviour, especially if contractual solutions are weak. The COVID-19 pandemic has brought about major changes that have led to situations, such as the scope of short-time work or...

Since there is scant evidence on the role of industrial relations in wage cyclicality, this paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, we find that works councils affect wage growth...