Do works councils raise or lower firm productivity?

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

Paid vacation use: The role of works councils

“…Second, there is substantial evidence that training activities are higher in works council establishments (Gerlach and Hübler, 2001;Hübler, 2003;Stegmaier, 2012;Zwick, 2005). These findings are consistent with those of studies indicating a positive correlation between productivity and the existence of a works council (Brändle, 2017;Hübler, 2015;Jirjahn and Mueller, 2014;Mueller, 2012Mueller, , 2015, although the effect may vary with firm size (Addison et al, 2001;Jirjahn and Mueller, 2014). The net impact of higher productivity and higher wages, i.e.…”

Why is there resistance to works councils in Germany? An economic perspective

“…More recent studies published since the last comprehensive literature review (Jirjahn, 2011) support the conclusion that correlations between the works council and productivity are largely positive (Brändle, 2013;Hübler, 2015;Jirjahn and Müller, 2014;Müller, 2012Müller, , 2015Pfeifer, 2011). To obtain a complete picture, however, two points must be taken into account:…”

“…However, as a case in point, Hübler (2015) reports that the productivity advantage of works council firms has declined in recent years. Moreover, find that wage cuts as a result of opening clauses occur more often in firms without works councils, which might indicate that works councils increase worker rent.…”

“…Although some studies investigate the interaction between works councils, collective agreements and opening clauses, the understanding of the consequences of this decentralization for the economic effects of works councils remains underdeveloped. However, as a case in point, Hübler (2015) reports that the productivity advantage of works council firms has declined in recent years. Moreover, Ellguth et al (2014) find that wage cuts as a result of opening clauses occur more often in firms without works councils, which might indicate that works councils increase worker rent.…”

Using the endowment effect to explain managerial resistance towards codetermination: Implications for employment relations from the German case

“…Both theory and evidence cast serious doubt on whether managerial opposition to co-determination is efficient and thus rational, in terms of the Coase Theorem. Thus, recent econometric research regarding Germany has linked works councils, specifically, to a range of positive organizational outcomes, including lower staff turnover (Frick 2007), higher productivity (Brändle 2017;Hübler 2015;Jirjahn and Muller 2014;Muller 2012Muller , 2015 and higher profitability (Mohrenweiser and Zwick 2009;Mueller 2011;Zwick 2007). Most importantly, the overall effect of works councils on profit is positive across large samples of companies (Mohrenweiser and Zwick 2009;Mueller 2011).…”