The Journal of Economic Perspectives · 2022 · 63 citations · 6 references
LawLabor LawCollective BargainingIndustrial RelationsWorks CouncilsCollective AgreementsCollective Bargaining AgreementsEmployee RepresentationEmploymentLabor-management RelationsWorker RepresentationBoard-level Employee RepresentationCollective Bargaining RepresentationCollective Bargaining SystemsCollective Worker RepresentationCoverage Under Collective Bargaining AgreementsEmployee Board RepresentationIndustrial Relations InstitutionsIndustrial Relations Systems
We give an overview of the “German model” of industrial relations. We organize our review by focusing on the two pillars of the model: sectoral collective bargaining and firm-level codetermination. Relative to the United States, Germany outsources collective bargaining to the sectoral level, resulting in higher coverage and the avoidance of firm-level distributional conflict. Relative to other European countries, Germany makes it easy for employers to avoid coverage or use flexibility provisions to deviate downwards from collective agreements. The greater flexibility of the German system may reduce unemployment, but may also erode bargaining coverage and increase inequality. Meanwhile, firm-level codetermination through worker board representation and works councils creates cooperative dialogue between employers and workers. Board representation has few direct impacts owing to worker representatives’ minority vote share, but works councils, which hold a range of substantive powers, may be more impactful. Overall, the German model highlights tensions between efficiency-enhancing flexibility and equity-enhancing collective action.
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Unions, Norms, and the Rise in U.S. Wage Inequality
Bruce Western, Jake Rosenfeld · American Sociological Review · 2011 · 869 citations
The Adjustment of Labor Markets to Robots
Wolfgang Dauth, Sebastian Findeisen, Jens Suedekum et al. · Journal of the European Economic Association · 2021 · 514 citations · Full text
The Erosion of the German System of Industrial Relations
Anke Hassel · British Journal of Industrial Relations · 1999 · 382 citations · Full text
Law, German, Collective Bargaining +14