The macroeconomic effect of codetermination is influenced by both scope and threshold.

"In the scientific discussion on codetermination it is often stated, for example, that the German system of codetermination provides very high levels of influence for employee representatives (Brocker, 2006; Donges et al., 2007; Rebhahn, 2004; Klös & Stettes, 2006). However, this extensive scope of codetermination is only granted to employees in very large firms. On the contrary, it is often neglected that no codetermination exists in German firms with less than 500 employees. At the same time, the threshold of codetermination law is very influential on the overall strength of codetermination: In Denmark, with a threshold of 35 employees, 60% of all employees are working in companies under codetermination law, while in Austria, with a threshold of 300 employees, this counts only for 15% of the work force (Taylor, 2006; Horïsch, 2009)."

empirical


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