The rise in orientation at collective bargaining without formal contract

Abstract

"While firms' participation in collective bargaining contracts has been decreasing over the last two decades, orientation at collectively bargained wages without formal commitment increased in popularity. This article raises the question whether orientation at collectively bargained wages is observed on the pathway out of bargaining contracts or serves as a stepping stone to bargaining contracts. Dynamic non-linear panel estimation applied to data from the IAB Establishment Panel reveals some modest support in favor of the stepping stone hypothesis. However, transitions from bargaining orientation to formal bargaining contracts cannot compensate for the overall decline in formal collective bargaining participation. Instead, the decline in formal participation and the opposing rise in orientation are mostly due to a changing establishment composition rather than behavioral transitions." (Author's abstract, IAB-Doku) ((en))

Cite article

Bossler, M. (2017): The rise in orientation at collective bargaining without formal contract. (LASER discussion papers 103), Erlangen, 30 p.