A House Divided: Employers & the Challenge to Pattern Bargaining in a United Germany. CES Germany & Europe Working Papers, No. 05.5, 1994

Recently, increasing numbers of new German firms have begun to break from tradition and refuse to join employers' associations. Simultaneously, an unprecedented portion of affiliates have begun to reconsider employers' association membership. The spectre of declining membership in German employers' associations-century-old pillars of organized capitalism-is particularly noteworthy because of the importance of these institutions to the German economy as a whole. Some observers have attributed this trend to the impact of German unification, yet a careful analysis reveals that its principal causes arose in the decade preceding it. The economic strain of unification, however, has accelerated "association flight'' and has provided dissidents with an unprecedented opportunity to challenge the hegemony of employers' associations over the regulation of wages and working conditions in the Federal Republic.

Central Bank Independence & Coordinated Wage Bargaining: Their Interaction in Germany & Europe. CES Germany & Europe Working Papers, No. 04.4, 1994

This paper explores the fashionable proposition that with a more independent central bank, a country can secure lower levels of inflation without higher unemployment. Hall shows that the operation of the central bank depends on the character of wage bargaining. He illustrates this point with some cross-national data and an analysis of how coordinated wage bargaining is secured in Germany. He concludes by exploring the implications of this analysis for European Monetary Union.

An Italian job: the need for collective wage bargaining reform. Bruegel Policy Brief ISSUE 2016/11 - JULY 2016

Highlights: Since the mid-1990s, Italy has been characterised by a lack of labour productivity growth, combinedwith a 60 percent growth in labour costs, 20 percentage points above euro-area average consumer price growth. As a consequence, Italy has become less competitive compared to its euro-area partners, the profitability of its firms has dropped and real GDP-per-capita has flatlined. • At the root of the substantial discrepancy between wages and productivity is Italy’s system of centralised wage bargaining which, in many ways, is designed without regard for the underlying industrial structure and geographical heterogeneity of the Italian economy.This has fostered perverse incentives and imbalances within Italy. • Collective wage bargaining, and in particular the determination of base salaries, should be moved from the national to the regional level for all contracts, in the public and private sectors.The Mezzogiorno,which might superficially be seen as losing out from this policy, would actually gain the most in competitiveness terms. • Furthermore, measures should be taken so that, in the long run, the Italian industrial structure evolves into a less fragmented small-company-based economy. This firm consolidation would likely expand the use of firm-level agreements and performance payments, and would improve Italy’s productivity and competitiveness overall.