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Is the German model of co-determination in corporations outdated?

Author

Listed:
  • Hubertus Schmoldt
  • Walther Müller-Jentsch
  • Wolfgang Jäger

Abstract

Co-determination in German enterprises has become a point of controversy not only in the light of the harmonization of European company law. It is also considered to be a reason for Germany's current economic weakness and for investor hesitation. Hubertus Schmoldt, of the trade union IG Bergbau, Chemie Energie, however, argues that the German model of co-determination is a locational advantage for Germany because "the enterprises that closely co-ordinate their actions with employee representatives are considerably less prone to crises and overcome crises that do occur much more easily". Prof. Walther Mueller-Jentsch, University of Bochum, also contradicts the opening opinion, but despite his positive assessment of enterprise co-determination, he sees the need for reform particularly regarding the strong influence of employees. Dr. Wolfgang Jaeger, Hans-Böckler Foundation, also argues in favour of co-determination.

Suggested Citation

  • Hubertus Schmoldt & Walther Müller-Jentsch & Wolfgang Jäger, 2004. "Is the German model of co-determination in corporations outdated?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(22), pages 03-12, November.
    • Handle: RePEc:ces:ifosdt:v:57:y:2004:i:22:p:03-12
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    References listed on IDEAS

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    1. Höpner, Martin, 2004. "Unternehmensmitbestimmung unter Beschuss: Die Mitbestimmungsdebatte im Licht der sozialwissenschaftlichen Forschung," MPIfG Discussion Paper 04/8, Max Planck Institute for the Study of Societies.
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    More about this item

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L00 - Industrial Organization - - General - - - General

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