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

John Addison (), Lutz Bellmann, Claus Schnabel () and Joachim Wagner ()
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Lutz Bellmann: Institute for Employment Research (IAB), Nuremberg and IZA Bonn

No 495, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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.

Keywords: works councils; Works Constitution Act; Germany (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: Written 2002-05
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