German sectoral wage bargaining leads to local wage disparities, study finds.
The study looked at how local wages and unemployment in Germany are related to national sectoral wage bargaining. They created a model that connects individual firm wages with national wage negotiations. The model suggests that there is a wage gap influenced by bargaining. The researchers found that in regions with low wages and high unemployment, there is no impact on wages. They also analyzed real-world data and found some evidence supporting their model.