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After the fall of the Berlin wall, the total fertility rate in East Germany tumbled from 1.7 (1989) to a stunning 0.7 children per woman (1994). While this fact is well-documented, little is still known about the crisis underlying causes. We propose a new explanation: permanent shifts in the...
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Theoretical models of downward real wage rigidity generate asymmetric wage cyclicality with real wages being rigid in "bad" times but upwardly flexible during "good". In this paper we use an administrative panel dataset from Germany to establish that such asymmetries are very salient in Germany....
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levels gives rise to the use of firm-level wage agreements reached by unions, while coverage by industry-wide contracts is …
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We study sequential bargaining between two unions and a single firm. Parties bargain bilaterally and efficiently (over … wage and employment). The unions' workforces can be substitutable ("tariff competition") or complementary ("tariff … plurality" or "craft unionism"). If unions are substitutable, then too many workers from the first union are employed at the …
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