|Title||Wage and Workforce Adjustments in the Economic Crisis in Germany and the Netherlands|
|Publication Type||Journal Article|
|Year of Publication||2014|
|Authors||Tijdens, Kea, van Klaveren, Maarten, Bispinck, Reinhard, Dribbusch, Heiner, and Öz, Fikret|
|Journal||European Journal of Industrial Relations|
|Pagination||165 - 183|
|Keywords||collective agreements, economic crisis, Germany, industrial relations, labor hoarding, Netherlands, workforce adjustments|
This study uses data from a continuous employee web-survey to investigate the trade-off between wage and workforce adjustments and the role of industrial relations in firm-level responses to the economic crisis in Germany and the Netherlands. Workforce adjustments seemed to be a continuous organizational strategy, but wage adjustments were less often reported. We found no large-scale evidence of wage concessions being traded-off for job protection in the two countries. Collective bargaining ensured that wage-setting was more robust than employment protection: employees covered by collective agreements reported workforce adjustments more often than wage adjustments. Low-educated and low-wage employees reported basic wage reductions more often: the economic crisis increased wage inequality. Labor hoarding was reported predominantly by young, male employees with a permanent, full-time contract.