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Original post: http://ged-project.de/2015/03/18/study-wage-inequality/
What role has the growth in global trade played in rising inequality?
The new STUDY-Increasing-Wage-Inequality by GED Project and the ifo Institute in Munich demonstrates that the decline in collective bargaining is the number one factor in rising wage inequality in Germany. But international trade, has played a, not insignificant, role as well.
Although wage inequality in Germany remains lower than the OECD average, it has risen faster in the last two decades than in the USA and Great Britain.
The real wages of Germany’s high earners in the top 20-percent bracket have increased by 2.5 percent (adjusted for inflation) since the mid-1990s. At the same time, wage levels sank by 2 percent in the lowest 20 percent. During that same period of time, the percentage of companies with collective wage agreements declined from 60 to 35 percent. Likewise, the share of employees covered by a collective wage agreement dropped from 82 to 62 percent. This decline is the strongest driver for rising wage inequality. The study estimates that the share of collective bargaining agreements has shrunk to around 43 percent.
Read the complete article: http://ged-project.de/2015/03/18/study-wage-inequality/