published in: Schmollers Jahrbuch: Zeitschrift für Wirtschafts- und Sozialwissenschaften / Journal of Applied Social Science Studies, 123 (3), 2003, 339-358
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 councils by establishment size and broad sector for eastern and western
Germany, while at the same time charting the determinants of their presence. Furthermore,
we identify newly established works councils and the circumstances of their formation.
Finally, we discuss the consequences of our findings for economic analysis of the institution
and for public policy.
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