Betriebliche Mitbestimmung in Deutschland: Verbreitung, Auswirkungen und Implikationen

Worker co-determination is a cornerstone of industrial relations in Germany. The author shows that the prevalence of works councils and of other forms of workplace representation is lower than often assumed. Theoretical approaches postulate both positive and negative effects of co-determination on establishments and workers. A survey of the empirical literature illustrates that, on the one hand, worker participation can increase productivity, improve personnel policy, and reduce employee fluctuation in the long run. On the other hand, redistribution effects cannot be ruled out since wages are typically higher in establishments with works councils. It is disputed whether these higher wages go along with lower profits. Overall, it becomes clear that workplace co-determination is neither the boon nor the bane as which it is sometimes depicted by its proponents and opponents.