Standards
Achieving Scientific Quality and Meeting Social Standards In order to secure the highest standards, the courses and the research projects will be evaluated. Evaluations form the…
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IWH-DPE Call for Applications – Fall 2022 Intake
Vacancy IWH-DPE Call for Applications – Fall 2022 Intake We encourage outstanding students with a master degree in economics or related fields, such as mathematics, statistics,…
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IWH-DPE Call for Applications – Fall 2024 Intake
Vacancy The Halle Institute for Economic Research (IWH) is one of Germany’s leading economic research institutes. The IWH focuses on research in macroeconomics, financial…
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IWH-DPE Call for Applications – Fall 2020 Intake
Vacancy The Halle Institute for Economic Research (IWH) is one of Germany’s leading economic research institutes. The IWH focuses on research in macroeconomics, financial…
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Teaching
Teaching Within the framework of its cooperations with both German and foreign universities IWH researchers are actively committed to teaching by offering academic courses. These…
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Internationalisation
Internationalisation Our international network enhances research and competitiveness. That is why our researchers cooperate with institutions and peers on a global scale and…
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Gender Equality & Anti-Discrimination
Equal Opportunities at IWH IWH commits to actively promoting equal opportunities for men and women, going beyond already existing guidelines. In 2013, 2016, 2019, and again in…
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IWH-DPE Call for Applications – Fall 2020 Intake
Vacancy The Halle Institute for Economic Research (IWH) is one of Germany’s leading economic research institutes. The IWH focuses on research in macroeconomics, financial…
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Operating Agreements
Operating Agreements Operating Agreement and Career Possibilities Working Time Regulations Berufliche Aus- und Weiterbildung (in German) Occupational Integration Management (BEM)…
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The German Model of Industrial Relations: Balancing Flexibility and Collective Action
Simon Jäger, Shakked Noy, Benjamin Schoefer
Journal of Economic Perspectives,
Vol. 36 (4),
2022
Abstract
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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