The German Model of Industrial Relations: (Where) Does It Still Exist?

Michael Oberfichtner and Claus Schnabel

No 11064, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data from the representative IAB Establishment Panel, this paper charts changes in the two main pillars of the German IR model over the last 20 years. It shows that collective bargaining coverage and worker representation via works councils have substantially fallen outside the public sector. Less formalized and weaker institutions such as voluntary orientation of uncovered firms towards sectoral agreements and alternative forms of employee representation at the workplace have partly attenuated the overall erosion in coverage. Multivariate analyses indicate that the traditional German IR model (with both collective agreements and works council presence) is more likely to be found in larger and older establishments, and it is less likely in establishments managed by the owner, in single and foreign-owned establishments, in individually-owned firms or partnerships, and in exporting establishments. In contrast, more than 60 percent of German establishments did not exhibit bargaining coverage or orientation or any kind of worker representation in 2015. Such a complete absence of the main institutional features of the German IR model is predominantly found in small and medium-sized establishments, in particular in the service sector and in eastern Germany, and its extent is increasing dramatically.

Keywords: collective bargaining; bargaining coverage; works council; worker participation; industrial relations; Germany (search for similar items in EconPapers)
JEL-codes: J50 J52 J53 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017-10
New Economics Papers: this item is included in nep-cdm, nep-eur and nep-lab
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Citations: View citations in EconPapers (12)

Published - published in: Journal of Economics and Statistics (Jahrbücher für Nationalökonomie und Statistik), 2019, 239 (1), 5-37

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Related works:
Journal Article: The German Model of Industrial Relations: (Where) Does It Still Exist? (2019)
Working Paper: The German model of industrial relations: (Where) does it still exist? (2017)
Working Paper: The German model of industrial relations: (Where) does it still exist? (2017)
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