A Cartel Analysis of the German Labor Institutions and its Implications for Labor Market Reforms

In this paper we apply standard cartel theory to identify the major institutional stabilizers of Germany?s area tariff system of collective bargaining between a single industry union and the industry?s employers association. Our cartel analysis allows us to demonstrate that recent labor policy reforms that intend to make labor markets more ?flexible? further serve to stabilize the labor cartel while other pro-competitive proposals have failed. We argue that the pro-competitive recommendations failed exactly because of their destabilizing effects on insiders? incentives to stay in the labor cartel. We propose regulatory measures for injecting competition into Germany?s labor markets that focus on the creation of new options for firms and workers outside the existing area tariff system; in particular, by liberalizing existing barriers for the establishment of a fully tariff-enabled union. Such an endeavor must go hand in hand with the institutionalization of a competition policy framework for labor market disputes as any destabilizing policy inevitably provokes counter measures of the incumbent labor cartel so as to protect their dominance vis-?-vis outsider competition

Atypical Forms of Employment in the Public Sector Are There Any?

The paper deals with various forms of atypical employment in the public sector that are widely neglected in existing research; its specific focus is on their development, scope, distribution and structural features. In the first part we break down the purely statistical category and differentiate between the disparate forms (part-time, marginal employment or minijobs, midijobs, fixed-term, agency work). In the second part we address the question if these forms are not only atypical, but also have to be classified as precarious. We distinguish various risks operative in the short, medium and long term (income, stability of employment and employability, pensions). Finally, we differentiate between employment in the private as well as the public sector and draw parallels and indicate specific differences in their development and situation. Our basic finding is that atypical forms of employment are also widespread in the public sector but are all in all less precarious than in the private sector. The distribution of individual forms shows major differences between both sectors whereas the over-all percentages are similar