Works councils in Germany: their effects on establishment performance

Addison, John T.; Schnabel, Claus; Wagner, Joachim

doi:10.1093/oep/53.4.659

Cited by 204 publications

(245 citation statements)

References 15 publications

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“…Moreover, even though the WCA aims at restricting distributional conflicts, codetermination de facto may aggravate conflicts within the establishment. One possibility is that works councils use their codetermination rights not for increasing joint establishment surplus but rather for rent-seeking activities (Addison et al, 2001). A council may use its codetermination rights on social or personnel matters to obtain employer concessions even on issues where it has no legal powers.…”

Section: Economic Effects Of Work Councilsmentioning

confidence: 99%

“…Hence, we check the robustness of results by excluding very small and very large establishments from the analysis. Following previous studies (Addison et al, 2001;Jirjahn, 2003aJirjahn, , 2003bWagner, 2008), we provide additional estimates for a subsample of medium sized establishments with between 21 and 100 employees. Table 3 summarizes the results on the key variables.…”

Section: The Issue Of Establishment Sizementioning

confidence: 99%

“…This is documented by a remarkably increasing number of econometric studies on the consequences of German works councils. Recent examinations typically obtain neutral or positive effects on training, employee retention, productivity, innovation, family friendly practices, and the use of performance pay (Addison et al, 2001;Jirjahn, 2002, 2009;Frick and Moeller, 2003;Huebler and Jirjahn, 2003;Askildsen et al, 2006;Smith, 2006;Kraft, 2007, 2011;Wagner, 2008;Pfeifer, 2011;Mueller, 2012). Yet, sociological case studies indicate that councils do not automatically live up to their potential (Frege, 2002).…”

Section: Introductionmentioning

confidence: 99%

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Non-union worker representation, foreign owners, and the performance of establishments

Jirjahn

Mueller

2012

Oxford Economic Papers

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Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower productivity in foreign-owned establishments. Our results conform to the notion that foreign ownership can involve strong tensions with the institutional patterns of the host country.JEL classifications: J53, J54, M54.

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Section: Economic Effects Of Work Councilsmentioning

confidence: 99%

Section: The Issue Of Establishment Sizementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Non-union worker representation, foreign owners, and the performance of establishments

Jirjahn

Mueller

2012

Oxford Economic Papers

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“…The first offers a significantly more positive view of the works council effect on productivity, in some part because of the introduction of new variables-such as collective bargaining, employee involvement, and establishment size-into the analysis. An illustrative paper is Addison et al (2001), who find a positive productivity effect of works councils except in smaller size (21-100 worker) plants.…”

Section: Theory and Empirical Evidence On Work Councils And Productimentioning

confidence: 99%

Works Councils and Firm Productivity in France

Fairris

Askenazy

2010

J Labor Res

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This paper utilizes establishment-level data to explore the impact of works councils on firm productivity in France. A variety of empirical techniques is employed, including fixed effects and regression discontinuity designs, to identify this impact. We estimate the works council effect on productivity in union and nonunion settings, and investigate the extent to which alternative forms of worker voice and information sharing might substitute for the works council's impact in production. We find no evidence of a positive impact of works councils on firm productivity in any of our results, and some limited evidence of a negative effect in some of the findings. There is no indication that estimated impacts on productivity vary with union status. However, a notable finding is that worker voice and information-sharing human resource practices are prevalent in French firms regardless of works council status, and are found to have positive and statistically significant effects on firm productivity.

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“…on manpower planning) and even codetermination (on the regulation of working hours and overtime, health and safety measures etc.). In contrast to unions, however, they may not call a strike, and the law enjoins the employer and the works council to "work together in a spirit of mutual trust" (for details, see Addison et al, 2001).…”

Section: Institutional and Theoretical Backgroundmentioning

confidence: 99%

Works councils – sand or grease in the operation of German firms?

Schänk

Schnabel

Wagner

2004

Applied Economics Letters

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Works councils in Germany: their effects on establishment performance

Cited by 204 publications

References 15 publications

Non-union worker representation, foreign owners, and the performance of establishments

Non-union worker representation, foreign owners, and the performance of establishments

Works Councils and Firm Productivity in France

Works councils – sand or grease in the operation of German firms?

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