Wages, Collective Bargaining and Economic Development in Germany
by Thorsten Schulten & Reinhard Bispinck

During the last decades, German industrial relations have undergone significant
changes leading to a partial erosion and fragmentation of collective bargaining
as well - and more fundamentally - to a significant change in power relations
and the weakening of trade unions. As a result, wage developments in the 2000s
in Germany became rather moderate with a growing differentiation among sectors,
a sharply rising incidence of low wages and an overall decline of the wage
share. This moderate wage development also influenced Germany's overall economic
development model as it significantly dampened private demand and thereby
promoted a growing discrepancy between a flourishing export industry and a
largely stagnating domestic sector. More recently, there have been some
indications that German wage policy might change again in a somewhat more
expansive and solidaristic direction.

full:
http://www.boeckler.de/pdf/p_wsi_disp_191.pdf
http://www.boeckler.de/wsi_6420.htm?produkt=HBS-005949
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