The State of Collective Bargaining and Worker Representation in Germany

This paper investigates trends in collective bargaining and worker representation in Germany<br />

from 2000 to 2008. It seeks to update and widen earlier analyses pointing to a decline in<br />

collective bargaining, while providing more information on the dual system as a whole. Using<br />

data from the IAB Employment Panel and the German Employment Register, we report<br />

evidence of a systematic and continuing erosion of the dual system. Not unnaturally the<br />

decline is led by developments in western Germany. Arguably, the path of erosion will<br />

continue until rough and ready convergence is reached with eastern Germany. Expressed<br />

differently, if the process of decentralization underpinning these developments once was<br />

Ôregulated' it no longer appears to be so.