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  1. Trade unions and corporate social responsibility
    Autor*in: Goerke, Laszlo
    Erschienen: February 29, 2020
    Verlag:  Verein für Socialpolitik, [Köln]

    Trade unions distort a profit-maximising firm's input choice. The nature of the resulting inefficiency depends on whether there is wage or efficient bargaining. Moreover, trade unions redistribute income and thereby affect welfare. If firms also... mehr

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    Trade unions distort a profit-maximising firm's input choice. The nature of the resulting inefficiency depends on whether there is wage or efficient bargaining. Moreover, trade unions redistribute income and thereby affect welfare. If firms also pursue Corporate Social Responsibility (CSR) objectives, input choices are distorted already in the absence of collective bargaining. Adopting a positive perspective, we show that CSR objectives which foster economic activity have ambiguous wage and employment consequences in case of wage negotiations and raise employment if there is efficient bargaining. Importantly from a normative vantage point, such CSR objectives make a welfare-enhancing role of trade unions more likely in the presence of wage negotiations, whereas the reverse may be true in case of efficient bargaining.

     
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    hdl: 10419/224609
    Schriftenreihe: Jahrestagung 2020 / Verein für Socialpolitik ; 102
    Schlagworte: Corporate Social Responsibility; Efficient Bargaining; Trade Unions,Wage Bargaining; Welfare
    Umfang: 1 Online-Ressource (circa 29 Seiten)
  2. Tax evasion by firms
    Autor*in: Goerke, Laszlo
    Erschienen: September 2021
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    This contribution surveys theoretical analyses of tax evasion by firms. It uses a simple model in which the firm determines economic activity and the under-declaration of the tax base to integrate various approaches into a coherent analytical... mehr

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    This contribution surveys theoretical analyses of tax evasion by firms. It uses a simple model in which the firm determines economic activity and the under-declaration of the tax base to integrate various approaches into a coherent analytical framework. Initially, the chapter characterises the basic features of the firm's decision. Subsequently, it considers the effects of firm-size heterogeneity, restrictions on evasion behaviour, the co-existence of tax evasion with other illegal activities, output market interactions, non-profit objectives, and corporate governance issues.

     
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    hdl: 10419/242846
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2021, 04
    Schlagworte: Firm; Tax Avoidance; Tax Evasion
    Umfang: 1 Online-Ressource (circa 24 Seiten)
  3. Cost uncertainty in an oligopoly with endogenous entry
    Autor*in: De Pinto, Marco; Goerke, Laszlo
    Erschienen: September 2021
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    How does cost uncertainty affect the welfare consequences of an oligopoly? To answer this question, we investigate a Cournot oligopoly in which firms produce a homogeneous commodity and market entry is feasible. Marginal costs are unknown ex-ante,... mehr

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    How does cost uncertainty affect the welfare consequences of an oligopoly? To answer this question, we investigate a Cournot oligopoly in which firms produce a homogeneous commodity and market entry is feasible. Marginal costs are unknown ex-ante, i.e. prior to entering the market. They become public knowledge before output choices are made. We show that uncertainty induces additional entry in market equilibrium and also raises the socially optimal number of firms. Since the first change dominates, the excessive entry distortion is aggravated. This prediction is robust to various extensions of the analytical set-up. Furthermore, the welfare loss due to oligopoly tends to increase with uncertainty.

     
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    hdl: 10419/242847
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2021, 05
    Schlagworte: Oligopoly; Excessive Entry; Uncertainty; Welfare
    Umfang: 1 Online-Ressource (circa 47 Seiten)
  4. Trade unions and Corporate Social Responsibility
    Autor*in: Goerke, Laszlo
    Erschienen: November 2020
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    Trade unions distort a profit-maximising firm's input choice. The nature of the resulting inefficiency depends on whether there are wage negotiations or there is efficient bargaining. Moreover, trade unions redistribute income and thereby affect... mehr

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    Trade unions distort a profit-maximising firm's input choice. The nature of the resulting inefficiency depends on whether there are wage negotiations or there is efficient bargaining. Moreover, trade unions redistribute income and thereby affect welfare. If firms also pursue Corporate Social Responsibility (CSR) objectives, input choices may be distorted already in the absence of collective bargaining. Adopting a positive perspective, we show that CSR objectives, which induce a firm to expand production, have ambiguous wage and employment consequences in case of wage negotiations and raise employment if there is efficient bargaining. Importantly from a normative vantage point, such CSR objectives make a welfare-enhancing role of trade unions more likely in the presence of wage negotiations. The reverse is true in case of efficient bargaining.

     
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    hdl: 10419/226183
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2020, 06
    Umfang: 1 Online-Ressource (circa 42 Seiten)
  5. Unions and workers' well-being
    Autor*in: Goerke, Laszlo
    Erschienen: 2020
    Verlag:  Global Labor Organization (GLO), Essen

    If individuals join a trade union their utility should increase. Therefore, union members can be expected to exhibit higher job satisfaction than comparable non-members. This expectation is not consistent with empirical findings. The evidence... mehr

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    If individuals join a trade union their utility should increase. Therefore, union members can be expected to exhibit higher job satisfaction than comparable non-members. This expectation is not consistent with empirical findings. The evidence sometimes indicates that union members have lower job satisfaction, but overall suggests the absence of a robust correlation. This survey discusses empirically relevant determinants of the relationship between trade union membership and job satisfaction. It distinguishes settings in which a trade union provides public goods from those in which it restricts the provision of benefits to its members. Furthermore, the survey summarizes the empirical evidence and indicates possible future research issues.

     
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    hdl: 10419/226522
    Schriftenreihe: GLO discussion paper ; no. 726
    Umfang: 1 Online-Ressource (circa 27 Seiten)
  6. Unions and workers' well-being
    Autor*in: Goerke, Laszlo
    Erschienen: December 2020
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    If individuals join a trade union their utility should increase. Therefore, union members can be expected to exhibit higher job satisfaction than comparable non-members. This expectation is not consistent with empirical findings. The evidence... mehr

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    If individuals join a trade union their utility should increase. Therefore, union members can be expected to exhibit higher job satisfaction than comparable non-members. This expectation is not consistent with empirical findings. The evidence sometimes indicates that union members have lower job satisfaction, but overall suggests the absence of a robust correlation. This survey discusses empirically relevant determinants of the relationship between trade union membership and job satisfaction. It distinguishes settings in which a trade union provides public goods from those in which it restricts the provision of benefits to its members. Furthermore, the survey summarizes the empirical evidence and indicates possible future research issues.

     
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    hdl: 10419/228536
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2020, 08
    Umfang: 1 Online-Ressource (circa 30 Seiten)
  7. Wage determination in the shadow of the law
    the case of works councilors in Germany
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: February 2021
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of... mehr

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    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a debate about the need to reform the law. This paper provides representative evidence on wage payments to works councilors for the period 2001 to 2015. We find wage premia of 2% to 6% in OLS-specifications, which are more pronounced for long-term works councilors. Moreover, we observe no wage premia in linear fixed-effects panel data specifications, suggesting that the OLS-results capture the effect of selection into works councillorship. We obtain no evidence for a delayed compensation or a special treatment of works councilors released from work. Hence, our results indicate that payments to works councilors are broadly in line with legal regulations.

     
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    hdl: 10419/231509
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2021, 01
    Schlagworte: Labor Law; Wages; Works Councils; Socio-economic Panel (SOEP)
    Umfang: 1 Online-Ressource (circa 39 Seiten)
  8. Wage determination in the shadow of the law
    the case of works councilors in Germany
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: February 2021
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of... mehr

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    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a debate about the need to reform the law. This paper provides representative evidence on wage payments to works councilors for the period 2001 to 2015. We find wage premia of 2% to 6% in OLS-specifications, which are more pronounced for long-term works councilors. Moreover, we observe no wage premia in linear fixed-effects panel data specifications, suggesting that the OLS-results capture the effect of selection into works councillorship. We obtain no evidence for a delayed compensation or a special treatment of works councillors released from work. Hence, our results indicate that payments to works councilors are broadly in line with legal regulations.

     
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    Weitere Identifier:
    hdl: 10419/235293
    Schriftenreihe: CESifo working paper ; no. 8923 (2021)
    Schlagworte: labor law; wages; works councils; Socio-economic Panel (SOEP)
    Umfang: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  9. Wage determination in the shadow of the law: the case of works councilors in Germany
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: [2021]
    Verlag:  German Socio-Economic Panel (SOEP), DIW Berlin, Berlin, Germany

    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of... mehr

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    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a debate about the need to reform the law. This paper provides representative evidence on wage payments to works councilors for the period 2001 to 2015. We find wage premia of 2% to 6% in OLS-specifications, which are more pronounced for long-term works councilors. Moreover, we observe no wage premia in linear fixed-effects panel data specifications, suggesting that the OLS-results capture the effect of selection into works councillorship. We obtain no evidence for a delayed compensation or a special treatment of works councilors released from work. Hence, our results indicate that payments to works councilors are broadly in line with legal regulations.

     
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    hdl: 10419/231533
    Schriftenreihe: SOEPpapers on multidisciplinary panel data research ; 1122 (2021)
    Schlagworte: Labor Law; Wages; Works Councils; Socio-Economic Panel (SOEP)
    Umfang: 1 Online-Ressource (circa 38 Seiten)
  10. Wage determination in the shadow of the law
    the case of works councilors in Germany
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: 2021
    Verlag:  Global Labor Organization (GLO), Essen

    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of... mehr

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    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a debate about the need to reform the law. This paper provides representative evidence on wage payments to works councilors for the period 2001 to 2015. We find wage premia of 2% to 6% in OLS-specifications, which are more pronounced for long-term works councilors. Moreover, we observe no wage premia in linear fixed-effects panel data specifications, suggesting that the OLS-results capture the effect of selection into works councillorship. We obtain no evidence for a delayed compensation or a special treatment of works councilors released from work. Hence, our results indicate that payments to works councilors are broadly in line with legal regulations.

     
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    hdl: 10419/231326
    Schriftenreihe: GLO discussion paper ; no. 789
    Schlagworte: Labor Law; Wages; Works Councils; Socio-Economic Panel (SOEP)
    Umfang: 1 Online-Ressource (circa 37 Seiten)
  11. Endogenous market structure and Partisan competition authorities
    Autor*in: Goerke, Laszlo
    Erschienen: May 2022
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    The so-called excess-entry theorem (Mankiw and Whinston 1986, Suzumura and Kiyono, 1987) establishes conditions guaranteeing that more firms enter a homogeneous Cournotoligopoly in equilibrium than a benevolent government prefers. We generalise the... mehr

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    The so-called excess-entry theorem (Mankiw and Whinston 1986, Suzumura and Kiyono, 1987) establishes conditions guaranteeing that more firms enter a homogeneous Cournotoligopoly in equilibrium than a benevolent government prefers. We generalise the approach and analyse the behaviour of a competition authority, which attaches different weights to the firms' and consumers' payoffs, with welfare-maximisation constituting a special case. The greater the importance of consumers is, the less likely are entry restrictions, whereas a greater relevance of firms makes a monopoly more probable. The nature of entry restrictions also depends on the competition authority's instruments. The essential insights continue to apply if firms are heterogeneous concerning costs and the timing of output choices.

     
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    hdl: 10419/260606
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2022, 01
    Schlagworte: Competition Authority; Cournot-Oligopoly; Excessive Entry; Monopoly; Partisan Objective
    Umfang: 1 Online-Ressource (circa 43 Seiten), Illustrationen
  12. Horizontal FDI in a dynamic Cournot-Oligopoly with endogenous entry
    Autor*in: Goerke, Laszlo
    Erschienen: March 2020
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    Entry in a homogeneous Cournot-oligopoly is excessive if and only if there is business-stealing (Amir et al. 2014). The excessive entry prediction has been derived primarily for closed economies and using a welfarist benchmark. We extend this... mehr

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    Entry in a homogeneous Cournot-oligopoly is excessive if and only if there is business-stealing (Amir et al. 2014). The excessive entry prediction has been derived primarily for closed economies and using a welfarist benchmark. We extend this framework and allow for (1) horizontal FDI in a multi-period setting and (2) interest group-based government behaviour. Opening the market to greenfield investments from abroad tends to aggravate the entry distortion. Moreover, market opening may reduce welfare if a more pronounced entry distortion dominates the gain in consumer surplus. Finally, a government, which places sufficiently little weight on the interests of consumers, will object to market opening, even if welfare rises.

     
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    hdl: 10419/214730
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2020, 03
    Umfang: 1 Online-Ressource (circa 42 Seiten)
  13. Job satisfaction and trade union membership in Germany
    Autor*in: Goerke, Laszlo; Huang, Yue
    Erschienen: 2022
    Verlag:  Global Labor Organization (GLO), Essen

    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects... mehr

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    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects estimates indicate an insignificant relationship. This is also true if we incorporate information on collective bargaining coverage or the existence of works councils in subsamples for which this data is available. To address the endogeneity of union membership, we generate information on the union density individuals faced in their industry and region. This time-variant IV suggests no causal impact of individual union membership on job satisfaction. Finally, using different estimation models, we investigate whether the effects vary by gender, age, birth year, and employment status.

     
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    hdl: 10419/261792
    Schriftenreihe: GLO discussion paper ; no. 1135
    Schlagworte: Exit-Voice Framework; German Socio-Economic Panel; Instrumental Variable; Job Satisfaction; Sorting; Trade Union Membership
    Umfang: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  14. Job satisfaction and trade union membership in Germany
    Autor*in: Goerke, Laszlo; Huang, Yue
    Erschienen: July 2022
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects... mehr

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    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects estimates indicate an insignificant relationship. This is also true if we incorporate information on collective bargaining coverage or the existence of works councils in subsamples for which this data is available. To address the endogeneity of union membership, we generate information on the union density individuals faced in their industry and region. This time-variant IV suggests no causal impact of individual union membership on job satisfaction. Finally, using different estimation models, we investigate whether the effects vary by gender, age, birth year, and employment status.

     
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    hdl: 10419/263798
    Schriftenreihe: CESifo working paper ; no. 9868 (2022)
    Schlagworte: exit-voice framework; German socio-economic panel; instrumental variable; job satisfaction; sorting; trade union membership
    Umfang: 1 Online-Ressource (circa 51 Seiten), Illustrationen
  15. Job satisfaction and trade union membership in Germany
    Autor*in: Goerke, Laszlo; Huang, Yue
    Erschienen: July 2022
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects... mehr

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    Using panel data from 1985 to 2019, we provide the first comprehensive investigation of the relationship between trade union membership and job satisfaction in Germany. Cross-sectional analyses reveal a negative correlation, while fixed effects estimates indicate an insignificant relationship. This is also true if we incorporate information on collective bargaining coverage or the existence of works councils in subsamples for which this data is available. To address the endogeneity of union membership, we generate information on the union density individuals faced in their industry and region. This time-variant IV suggests no causal impact of individual union membership on job satisfaction. Finally, using different estimation models, we investigate whether the effects vary by gender, age, birth year, and employment status.

     
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    hdl: 10419/263675
    Schriftenreihe: Discussion paper series / IZA ; no. 15459
    Schlagworte: exit-voice framework; German socio-economic panel; instrumental variable; job satisfaction; sorting; trade union membership
    Umfang: 1 Online-Ressource (circa 51 Seiten), Illustrationen
  16. Immigrants and trade union membership
    does integration into society and workplace play a moderating role?
    Autor*in: Bedaso, Fenet Jima; Jirjahn, Uwe; Goerke, Laszlo
    Erschienen: September 2022
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less... mehr

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    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants' integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany.

     
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    hdl: 10419/265808
    Schriftenreihe: Discussion paper series / IZA ; no. 15587
    Schlagworte: union membership; migration; works council; social contacts with natives; years since arrival
    Umfang: 1 Online-Ressource (circa 34 Seiten)
  17. Immigrants and trade union membership
    does integration into society and workplace play a moderating role?
    Autor*in: Bedaso, Fenet Jima; Jirjahn, Uwe; Goerke, Laszlo
    Erschienen: 2022
    Verlag:  Global Labor Organization (GLO), Essen

    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less... mehr

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    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants' integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany.

     
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    hdl: 10419/264930
    Schriftenreihe: GLO discussion paper ; no. 1169
    Schlagworte: Union membership; migration; works council; social contacts with natives; years since arrival
    Umfang: 1 Online-Ressource (circa 33 Seiten)
  18. On the welfare effects of adverse selection in oligopolistic markets
    Autor*in: De Pinto, Marco; Goerke, Laszlo; Palermo, Alberto
    Erschienen: October 2022
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We consider a principal-agent relationship with adverse selection. Principals pay informational rents due to asymmetric information and sell their output in a homogeneous Cournot-oligopoly. We find that asymmetric information may mitigate or more... mehr

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    We consider a principal-agent relationship with adverse selection. Principals pay informational rents due to asymmetric information and sell their output in a homogeneous Cournot-oligopoly. We find that asymmetric information may mitigate or more than compensate the welfare reducing impact of market power, irrespective of whether the number of firms is given exogenously or determined endogenously by a profit constraint. We further show that welfare in a setting with adverse selection may be higher than the maximized welfare level attainable in a world with perfect observability.

     
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    hdl: 10419/267236
    Schriftenreihe: CESifo working paper ; no. 10003 (2022)
    Umfang: 1 Online-Ressource (circa 42 Seiten), Illustrationen
  19. Immigrants and trade union membership
    does integration into society and workplace play a moderating role?
    Autor*in: Bedaso, Fenet Jima; Jirjahn, Uwe; Goerke, Laszlo
    Erschienen: [2022]
    Verlag:  Universität Trier, Trier

    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less... mehr

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    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants' integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany.

     
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    hdl: 10419/272358
    Schriftenreihe: Research papers in economics ; no. 22, 7
    Schlagworte: Union membership; migration; works council; social contacts with natives; years since arrival
    Umfang: 1 Online-Ressource (circa 33 Seiten)
  20. On the welfare effects of adverse selection in oligopolistic markets
    Autor*in: De Pinto, Marco; Goerke, Laszlo; Palermo, Alberto
    Erschienen: September 2022
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    We consider a principal-agent relationship with adverse selection. Principals pay informational rents due to asymmetric information and sell their output in a homogeneous Cournot-oligopoly. We find that asymmetric information may mitigate or more... mehr

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    We consider a principal-agent relationship with adverse selection. Principals pay informational rents due to asymmetric information and sell their output in a homogeneous Cournot-oligopoly. We find that asymmetric information may mitigate or more than compensate the welfare reducing impact of market power, irrespective of whether the number of firms is given exogenously or determined endogenously by a profit constraint. We further show that welfare in a setting with adverse selection may be higher than the maximized welfare level attainable in a world with perfect observability.

     
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    hdl: 10419/265260
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2022, 02
    Schlagworte: Adverse Selection; Oligopoly; Welfare
    Umfang: 1 Online-Ressource (circa 45 Seiten), Illustrationen
  21. Immigrants and trade union membership
    does integration into society and workplace play a moderating role?
    Autor*in: Bedaso, Fenet Jima; Jirjahn, Uwe; Goerke, Laszlo
    Erschienen: September 2022
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less... mehr

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    We hypothesize that incomplete integration into the workplace and society implies that immigrants are less likely to be union members than natives. Incomplete integration makes the usual mechanism for overcoming the collective action problem less effective. Using data from the Socio-Economic Panel, our empirical analysis confirms a unionization gap for first-generation immigrants in Germany. Importantly, the analysis shows that the immigrant-native gap in union membership indeed depends on immigrants' integration into the workplace and society. The gap is smaller for immigrants working in firms with a works council and having social contacts with Germans. Our analysis also confirms that the gap is decreasing in the years since arrival in Germany.

     
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    hdl: 10419/265261
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2022, 03
    Schlagworte: Union membership; migration; works council; social contacts with natives; years since arrival
    Umfang: 1 Online-Ressource (circa 37 Seiten)
  22. Seeking shelter in times of crisis?
    unemployment, perceived job insecurity and trade union membership
    Autor*in: Chadi, Adrian; Goerke, Laszlo
    Erschienen: March 2023
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    Do trade unions benefit from economic crises by attracting new members among workers concerned about job security? To address this question, we provide a comprehensive empirical investigation based on panel data from Germany, where workers... mehr

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    Do trade unions benefit from economic crises by attracting new members among workers concerned about job security? To address this question, we provide a comprehensive empirical investigation based on panel data from Germany, where workers individually decide on their membership. We analyse whether exogenously manipulated perceptions of job insecurity encourage individuals to join a union. Firm-level workforce reductions serve as the first trigger of perceived job insecurity. Regional unemployment rates represent a second source of exogenous variation. Third, we propose a novel identification approach based on plant-closureinduced job losses of other workers in the same region. In each case, we exploit the longitudinal nature of the data to analyse the implications of changes in labour market conditions for changes in union membership using an instrumental-variable approach. We consistently find that perceived job insecurity, as triggered by labour market turmoil, increases the likelihood of individual union membership. Analysing data on media coverage about downsizing in a complementary investigation, we add further evidence to the notion of trade unions as beneficiaries of labour market crises. Finally, we consider workers who lose their jobs and find no evidence of adverse effects on union membership among those directly affected by the labour market situation.

     
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    hdl: 10419/273539
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2023, 02
    Schlagworte: Job security; German Socio-Economic Panel; Workforce reduction; Trade union membership; Regional labour markets; Media coverage
    Umfang: 1 Online-Ressource (circa 75 Seiten), Illustrationen
  23. Informational rents and the excessive entry theorem
    the case of hidden action
    Autor*in: De Pinto, Marco; Goerke, Laszlo; Palermo, Alberto
    Erschienen: February 2023
    Verlag:  Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier

    Entry in a homogeneous Cournot-oligopoly is excessive if there is business stealing. This prediction assumes that production costs reduce profits and welfare equally. However, this need not be the case. If there is asymmetric information, suppliers... mehr

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    Entry in a homogeneous Cournot-oligopoly is excessive if there is business stealing. This prediction assumes that production costs reduce profits and welfare equally. However, this need not be the case. If there is asymmetric information, suppliers or employees can utilize their superior knowledge to extract informational rents. Rent payments reduce profits and deter entry, but affect neither the optimal number of firms nor welfare directly. Therefore, entry becomes insufficient if informational rents are large enough. In the context of a moral hazard model, we show that insufficient entry occurs if entry costs are sufficiently high. Such costs lower the number of firms and, thereby, raise informational rents.

     
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    hdl: 10419/268732
    Schriftenreihe: IAAEU discussion paper series in economics / IAAEU ; no. 2023, 01
    Schlagworte: Oligopoly; excessive entry; informational rents; moral hazard
    Umfang: 1 Online-Ressource (circa 28 Seiten)
  24. Wage determination in the shadow of the law: the case of works councilors in Germany
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: February 2021
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of... mehr

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    The German law on co-determination at the plant level (Betriebsverfassungsgesetz) stipulates that works councilors are neither to be financially rewarded nor penalized for their activities. This regulation contrasts with publicized instances of excessive payments. The divergence has sparked a debate about the need to reform the law. This paper provides representative evidence on wage payments to works councilors for the period 2001 to 2015. We find wage premia of 2% to 6% in OLS-specifications, which are more pronounced for long-term works councilors. Moreover, we observe no wage premia in linear fixed-effects panel data specifications, suggesting that the OLS-results capture the effect of selection into works councillorship. We obtain no evidence for a delayed compensation or a special treatment of works councilors released from work. Hence, our results indicate that payments to works councilors are broadly in line with legal regulations.

     
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    hdl: 10419/232895
    Schriftenreihe: Discussion paper series / IZA ; no. 14143
    Schlagworte: labor law; wages; works councils; socio-economic panel (SOEP)
    Umfang: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  25. Social custom, free-riders, and trade union membership in Germany and Great Britain
    Autor*in: Goerke, Laszlo; Pannenberg, Markus
    Erschienen: 1998
    Verlag:  Deutsches Institut für Wirtschaftsforschung (DIW), Berlin

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