Collective Bargaining Structure and its Determinants: An Empirical Analysis with British and German Establishment Data

Abstract

Both Britain and Germany have experienced a substantial decline in collective bargaining coverage in recent decades, though coverage is lower in Britain. Whereas multi-employer bargaining predominates in Germany, single-employer bargaining is more important in Britain. Econometric analyses show that similar variables play a statistically significant role in explaining the structure of collective bargaining in both countries; these include establishment size and age, foreign ownership, public sector affiliation and subsidiary status.