Endogenous stability and change of labor market institutions under changing competitive conditions in product markets

  • Project period: 07/2008 - 08/2009 und 01/2011 - 05/2012
  • Funding: Deutsche Forschungsgemeinschaft (DFG)


The impact of globalization and the liberalization of product markets on employment conditions can be observed in almost every industry. Apart from the direct impact on employment and wage levels, increasing competitive pressure in product markets, caused by new competition from foreign countries or entry into formerly state-protected industries, induces institutional changes in labor markets.

This project focuses on the changes in labor market organization due to new competitive conditions arising in product markets. We analyze the impact of globalization on the organization of labor, especially focusing on the effect of firm mobility on the stability of labor market institutions.

The creation of craft unions, especially in transport industries and in the health sector, is a widely discussed example of such a change in labor market organization. As part of the DFG- project, we analyze how imperfect competition between firms affects the incentives for workers to organize along craft lines.

Researchers involved

Responsible for the content: