Liason Professor, Friedrich Ebert Foundation
The macroeconomic effect of codetermination is influenced by both scope and threshold.
Higher levels of codetermination correlate with greater national equality.
Codetermination led to significantly lower income share for the highest decile of income, while union strength had no significant impact.
Codetermination level has a stronger correlation with national equality than trade union density (together they explain more than 2/3rds of the variation).
The Macroeconomic Effect of Codetermination on Income Equality
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