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German trade unions after unification - third degree wage discriminating monopolists

Author: Burda, Michael C. ; Funke, MichaelINSEAD Area: Economics and Political Science Series: Working Paper ; 91/33/EPS Publisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 25 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: After unification, real wages in Eastern Germany rose rapidly relative to labour productivity and despite high and rising levels of unemployment. This substantial increase in wage levels relative to West Germany is difficult to explain without recourse to models of union behaviour or collective bargaining. This paper applies and extends such models and evaluates plausible explanations for recent short-run wage developments in the ex-GDR
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After unification, real wages in Eastern Germany rose rapidly relative to labour productivity and despite high and rising levels of unemployment. This substantial increase in wage levels relative to West Germany is difficult to explain without recourse to models of union behaviour or collective bargaining. This paper applies and extends such models and evaluates plausible explanations for recent short-run wage developments in the ex-GDR

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