Common Contracts
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Collective wage agreement and minimum wage in GermanyCollective Wage Agreement • March 28th, 2013
This paper departs from a short analysis of trends in collective bargaining coverage in Germany and describes the groups not covered by a collective agreement. It then analyses the link between the rise of the low wage sector and the increase in non-coverage by a collective agreement and asks about the impact of non-coverage by region, sector, company size and gender. In a third section the system of industry-level minimum wages under the Posted Workers Act will be briefly explained. Key results of evaluation studies on the employment impact of these minimum wages as well as assessments of the effect of the introduction of a nation-wide minimum wage will be reviewed and a short overview of evaluations carried out in selected countries that already have introduced minimum wages is given. Finally the paper addresses the question what lessons can be drawn for Germany from the Austrian system of industrial relations that leads to a high collective bargaining coverage and a comparatively sm
