This paper provides the first full examination of the effect of German works councils on wages using matched employer-employee data (specifically, the LIAB for 2001). We find that works councils are associated with higher earnings. The wage premium is around 11 percent (and is higher under...

Konzepte der Wirtschaftsdemokratie wurden in Deutschland in den 1920er Jahren intensiv, vor allem von Gewerkschaftern und einigen Sozialwissenschaftlern diskutiert. Diese Konzepte gingen auch in Rekonstruktionsperiode in Westdeutschland nach dem 2. Weltkrieg ein. Dieser Artikel betrachtet eine...

German law guaranteeing works councils is not a datum. The thrust of legislation has changed significantly on a number of occasions since 1920. The most recent legal change in the form of the Works Constitution Reform Act marks a controversial swing in favor of works council formation and...