Essays on Economic Effects of Labour Market Institutions, especially in Industrial Relations

In different countries around the world, labour market institutions are important factors determining economic outcomes such as employment, wages, growth, or income inequality. Knowing about institutions and their effects plays a central role in understanding the mechanisms of how labour markets work and are a central part of studying labour economics.

The thesis deals with the economic analysis of the economic effects of labour market institutions, especially in industrial relations. It consists of six essays which look at the topic from different angles: the effects of collective bargaining and its flexibilisation, the effects of works councils, the interaction between the former, and the effects of employment protection legislation. The book contains an overview on the system of industrial relations in Germany and its impact on employment growth and other labour market outcomes. To gain understanding for an employment-orientated policy, the work shows that it is important to know whether similar effects than those for Anglo-Saxon countries can be found in a different institutional setting. Especially, it acknowledges the possible interactions between various institutions, e.g. collective bargaining flexibilisation and works council behavior. Also, it offers insights on new mechanisms over which rents can be distributed between employers and employees by these labour market institutions.