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Collective Bargaining and Innovation in Germany: A Case of Cooperative Industrial Relations?
Author(s) -
Addison John T.,
Teixeira Paulino,
Evers Katalin,
Bellmann Lutz
Publication year - 2017
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12165
Subject(s) - collective bargaining , german , industrial relations , balance (ability) , representation (politics) , economics , economic system , labour economics , political science , management , psychology , law , politics , archaeology , neuroscience , history
At the level of theory, the effect of collective bargaining on innovation is contested. The large proponderance of the U.S. evidence clearly points to adverse effects, but other‐country experience suggests that certain industrial‐relations systems, or the wider regulatory apparatus, might even tip the balance in favor of unions. Our pooled cross‐ section and difference‐in‐differences estimates provide some weak evidence that German collective bargaining inhibits innovation. However, in conjunction with workplace representation, there is the suggestion that it might actually foster innovative activity.