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German Works Councils Old and New: Incidence, Coverage and Determinants

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Author Info

  • Addison, John T.

    ()
    (University of South Carolina)

  • Bellmann, Lutz

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Schnabel, Claus

    ()
    (University of Erlangen-Nuremberg)

  • Wagner, Joachim

    ()
    (Leuphana University Lüneburg)

Abstract

Although works councils are a core element of the German system of industrial relations, there is little reliable information on their incidence and coverage. This paper uses data from the nationally representative IAB establishment panel to fill this gap. We examine the frequency of works councils by establishment size and broad sector for eastern and western Germany, while at the same time charting the determinants of their presence. Furthermore, we identify newly established works councils and the circumstances of their formation. Finally, we discuss the consequences of our findings for economic analysis of the institution and for public policy.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 495.

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Length: 26 pages
Date of creation: May 2002
Date of revision:
Publication status: published in: Schmollers Jahrbuch: Zeitschrift für Wirtschafts- und Sozialwissenschaften / Journal of Applied Social Science Studies, 123 (3), 2003, 339-358
Handle: RePEc:iza:izadps:dp495

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Keywords: Works Constitution Act; works councils; Germany;

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  1. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
  2. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The Long Awaited Reform of the German Works Constitution Act," IZA Discussion Papers 422, Institute for the Study of Labor (IZA).
  3. Kohaut, Susanne & Schnabel, Claus, 2001. "Tarifverträge - nein danke!? Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe," Discussion Papers 8, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Fitzroy, Felix R & Kraft, Kornelius, 1987. "Efficiency and Internal Organization: Works Councils in West German Firms," Economica, London School of Economics and Political Science, vol. 54(216), pages 493-504, November.
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