In Germany, many labour laws and regulations apply only in establishments above a critical size, and usually these thresholds are defined by the number of employees. The existing 160 thresholds are complex and defined inconsistently, making it difficult for firms to obey the law. Moreover,...

Using a large linked employer-employee data set for Germany, we find that the existence of a works council is associated with a lower separation rate to employment, in particular for men and workers with low tenure. While works council monopoly effects show up in all specifications, clear voice...