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Bargaining Power and the Labor Share – a Structural Break Approach

In this paper we investigate the relevance of bargaining institutions in the decline in labor share. Several explanations for the decline exist, which consider the relevance of technology, globalization and markups. Surprisingly neglected so far, however, is the influence of bargaining institutions, in particular with a focus on changes in the outside option. Find out more in our latest SFB 823 discussion paper No. 12/2021. Abstract: We provide evidence of this issue, using the Hartz IV labor market reform in Germany as an exogenous shock in the wage bargaining of employees, and investigate its impact on the labor share. We…

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The Impact of a New Workplace Technology on Employees

This paper investigates the impact of the implementation of a new workplace technology on worker outcomes such as overtime, training and perceived productivity. While the effects of new technologies on firm outcomes are widely discussed, the impact on workers still remains debated. (joint work with Marek Giebel) Abstract: Detailed worker-level data for Germany allows us to compare the outcomes for workers which are exposed to a change in workplace technologies to the group of workers which are not exposed in the periods before and after the introduction. Moreover, we exploit the perception of the new technology by employees to determine…

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The Effects of Reforming a Federal Employment Agency on Labor Demand

In this paper we report the results of an empirical study on the employment growth effects of a policy intervention, explicitly aimed at increasing placement efficiency of the Federal Employment Agency in Germany. Find out more in our latest SFB 823 discussion paper No. 28/2019. Abstract: We use the Hartz III reform in the year 2004 as an exogenous intervention that improves the matching process and compare establishments that use the services of the Federal Employment Agency with establishments that do not use the placement services. Using detailed German establishment level data, our difference-in-differences estimates reveal an increase in employment…

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Employee Representation and Innovation

Technological progress is essential for economic growth and the competitiveness of every firm. Find out more about the relationship between employee representation and product as well as process innovation in our latest SFB 823 discussion paper No. 04/2019. Abstract: This paper studies the effect of employee representation bodies provided by management on product and process innovations. In contrast to statutory forms of co-determination such as works councils, participative practices initiated by management are not equipped with any legally granted rights at all. Such alternative forms of employee representation are far less frequently and thoroughly analyzed than works councils. We compare…

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