We analyse the interaction between different labour market institutions in Germany, a country with a long tradition of strong bargaining partners. A number of studies have established that industry-level bargaining exerts a moderating role on firm-level co-determination: works councils generate...

The need to increase the flexibility and dynamics of their labor markets has made many European countries to proceed with institutional reforms. However, only few of them have decided on a radical transformation. Germany belongs to this club of reformers. In 2003, the German government...