Article in Journal
Decentralization of wage negotiations in Germany - a way to create more jobs?
Wolfgang Ochel
ifo Institut für Wirtschaftsforschung, München, 2005
in: ifo Schnelldienst, 2005, 58, Nr. 05, 07-18
ifo Institut für Wirtschaftsforschung, München, 2005
in: ifo Schnelldienst, 2005, 58, Nr. 05, 07-18
In January 2005, 5.4 million people were officially unemployed in Germany. This corresponded to an unemployment rate of 12.1%. Factors behind the high unemployment are seen in insufficient wage restraint, the inadequate differentiation of wages and their insufficient flexibility. The negative effect of wage developments is often regarded as a result of the German wage negotiation system. The question that arises is whether a decentralisation of wage negotiations can lead to an increase in employment in Germany.
JEL Classification: J210,J300
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ifo Schnelldienst 05/2005
ifo Institut für Wirtschaftsforschung, München, 2005