John T. Addison
University of South Carolina – Moore School of Business – Department of Economics; Institute for the Study of Labor (IZA)
Universidade de Coimbra – Faculdade de Economia; Center for European Economic Research (ZEW)
UCL; National Institute of Economic and Social Research (NIESR)
Government of the Federal Republic of Germany – Institute for Employment Research (IAB)
IZA Discussion Paper No. 5987
This paper depicts and examines the decline in collective bargaining coverage in Germany. Using repeat cross-section and longitudinal data from the IAB Establishment Panel, we show the overwhelming importance of behavioral as opposed to compositional change and, for the first time, document workplace transitions into and out of collective agreements via survival analysis. We provide estimates of the median duration of coverage, and report that the factors generating entry and exit are distinct and symmetric.