TY  - RPRT
        AU  - Addison, John T.
AU  - Teixeira, Paulino
AU  - Evers, Katalin
AU  - Bellmann, Lutz
        TI  - Pacts for Employment and Competitiveness as a Role Model? Their Effects on Firm Performance
        PY  - 2015/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9323
        UR  - https://www.iza.org/publications/dp9323
        AB  - Pacts for employment and competitiveness are an integral component of the ongoing process of decentralization of collective bargaining in Germany, a phenomenon that has been hailed as key to that nation's economic resurgence. Yet little is known about the effects of pacts on firm performance. The evidence largely pertains to employment and is decidedly mixed. The present paper investigates the association between pacts and a wider set of outcomes – wages, employment, investment, productivity, innovation, and survivability – in a RDD framework where the controls comprise establishments that negotiated over pacts but failed to reach agreement on their implementation. An extensive set of simulations are run to test for robustness of the key findings of the model. There is no evidence of pacts negatively impacting any of the selected measures of establishment performance. Indeed, the positive effects reported for wages, productivity, and innovation are sustained in simulations.
        KW  - pacts for employment and competitiveness
KW  - opening clauses decentralization
KW  - concession bargaining
KW  - firm performance
KW  - regression discontinuity design
KW  - Germany
        ER  -