Codetermination led to significantly lower income share for the highest decile of income, while union strength had no significant impact.

The results show that the level of codetermination in the private sector has a strong and strongly significant impact on the income distribution on both, the EU and the OECD countries. A higher level of codetermination thereby leads to more equally distributed incomes, indicated by a lower Gini index. This result holds true if the socio-economic control variables are included (see Model 3). The impact of codetermination however becomes slightly smaller if the controls are included, but remains strongly significant and negative.

empirical