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The reform of the German works constitution act: a critical assessment

John Addison (), Lutz Bellmann, Claus Schnabel () and Joachim Wagner ()

No 16, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Since 1920, the thrust of German law on workplace codetermination has changed on a number of occasions. We describe the latest swing of the legislative pendium - favoring works council formation and competence - and evaluate the case for it. We provide new information on the extent of works councils before reviewing the evidence on their economic effects, focusing on some new results from matched-plant data. If the former evidence points to a codetermination deficit, this shortfall does not appear to have negative consequences for workplace productivity, profitability, and employment.

Keywords: Works councils; codetermination; Germany (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Date: 2002
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