We analyse how countries' innovation outcomes are affected by national legislations of worker participation to corporate governance. We develop a model of employee representation laws (ERL) and innovation in the presence of incomplete labour contracts and predict heterogeneous ERL effects across...

Why does codetermination exist in Germany? Law and economics theories have contended that if there were no legal compulsion, worker participation in corporate governance would be ‘virtually nonexistent’. This positive analysis, which flows from the ‘nexus of contracts’ conception of the...

This study presents a comparative analysis of regulatory thresholds applicable to firms in France and in Germany. A central question tackled by the report is whether regulations related to limits on firms’ employment appear to prevent French firms from growing above these thresholds. The first...