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This paper explores the role that employers’ associations may play in centralized wage bargaining processes. It thereby adds to the literature on labor markets, in which the relationship between union behavior and unemployment has been explored quite extensively, while employers’...
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...