Trade Unions and Productivity: The German Evidence

This paper provides a brief review of the empirical evidence on union productivity effects in Germany. The influence of trade unions on productivity is the net effect of conflicting forces which can lead to higher or lower productivity. Although the German dual system of workers' representation via unions and works councils is quite favourable to the existence of productivity-enhancing 'voice' effects, various empirical studies have not been able to detect significant positive net effects of these institutions on productivity.