In Germany, trade unions and employers associations play a role not only in wage determination but also in social affairs and labour law. While the majority of firms are organized in employers associations, less than one quarter of employees are members of a trade union. Both social partners...

Since there is scant evidence on the role of industrial relations in wage cyclicality, this paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, we find that works councils affect wage growth...

Since there is scant evidence on the role of industrial relations in wage cyclicality, this paper analyzes the effect of collective wage contracts and of works councils on real wage growth. Using linked employer-employee data for western Germany, we find that works councils affect wage growth...