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German works councils old and new: incidence, coverage and determinants

Author

Listed:
  • Addison, John T.
  • Bellmann, Lutz
  • Schnabel, Claus
  • Wagner, Joachim

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 provide the first econometric analysis of the circumstances of their formation. Finally, we discuss the consequences of our findings for economic analysis of the institution and for public policy.

Suggested Citation

  • Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "German works councils old and new: incidence, coverage and determinants," Discussion Papers 10, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    • Handle: RePEc:zbw:faulre:10
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    References listed on IDEAS

    as
    1. 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.
    2. Olaf Hübler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, September.
    3. 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.
    4. 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 of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Works Councils; Works Constitution Act; Germany;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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