Codetermination level has a stronger correlation with national equality than trade union density (together they explain more than 2/3rds of the variation).
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.