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...

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...

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,...

In public discussion in Germany it is often argued that jobs are mainly created in small and medium-sized firms (i.e. the Mittelstand"), whereas large firms tend to reduce their number of jobs. An empirical analysis for the period 1999 to 2005 with data of all western and eastern German firms...

Using two nationally representative establishment data sets, this paper investigates collective bargaining coverage and firms' choice of governance structures for the employment relationship in Britain and in (western and eastern) Germany. Both countries have experienced a substantial decline in...