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German Works Councils, Profits, and Innovation

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  • Addison, John T
  • Schnabel, Claus
  • Wagner, Joachim

Abstract

Worker participation is today much in vogue. Of the direct mechanisms, the German works council has attracted most theoretical and policy attention because of its participative reach, mandatory (though not automatic) nature, and seemingly limited distributive bargaining function. Despite its popularity, rather little is known of the effects of the institution on firm performance or, relatedly, of its likely nonrandom distribution. Using a new large-scale database, the authors report that German works councils are associated with significantly lower firm profitability but not with reduced innovative activity. Their findings do not closely accord with any extant quasi-theoretical representation of this participative institution. Copyright 1996 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 49 (1996)
Issue (Month): 4 ()
Pages: 555-82

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Handle: RePEc:bla:kyklos:v:49:y:1996:i:4:p:555-82

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Cited by:
  1. Blechinger, Doris & Pfeiffer, Friedhelm, 1998. "Qualifikation, Beschäftigung und technischer Fortschritt - Weitere empirische Evidenz mit den Daten des Mannheimer Innovationspanels," ZEW Discussion Papers 98-04, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, 06.
  3. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Balsmeier, Benjamin & Bermig, Andreas & Dilger, Alexander, 2013. "Corporate governance and employee power in the boardroom: An applied game theoretic analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 51-74.
  5. Jürgens, Ulrich & Rupp, Joachim, 2002. "The German system of corporate governance: Characteristics and changes," Discussion Papers, Research Unit: Regulation of Work FS II 02-203, Social Science Research Center Berlin (WZB).
  6. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2013. "Collective Bargaining and Innovation in Germany: Cooperative Industrial Relations?," GEMF Working Papers 2014-01, GEMF - Faculdade de Economia, Universidade de Coimbra.
  7. Jürgens, Ulrich & Rupp, Joachim & Vitols, Katrin & Jäschke-Werthmann, Bärbel, 2000. "Corporate Governance and Shareholder Value in Deutschland," Discussion Papers, Research Unit: Regulation of Work FS II 00-202, Social Science Research Center Berlin (WZB).
  8. Jan Erik Askildsen & Uwe Jirjahn & Stephan C. Smith, 2002. "Works Councils and Environmental Investment: Theory and Evidence from German Panel Data," CESifo Working Paper Series 785, CESifo Group Munich.
  9. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003. "German works councils in the production process," Discussion Papers 21, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  10. Olaf Hübler, 2003. "Fördern oder behindern Betriebsräte die Unternehmensentwicklung?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 4(4), pages 379-397, November.
  11. Schnabel, Claus & Wagner, Joachim, 2001. "Verbreitung und Bestimmungsgründe verschiedener Formen der Arbeitnehmerpartizipation in Industriebetrieben," Discussion Papers 5, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  12. Dilger, Alexander, 1997. "Ertragswirkungen von Betriebsräten: Eine Untersuchung mit Hilfe des NIFA-Panels," Wirtschaftswissenschaftliche Diskussionspapiere 04/1997, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
  13. Bellmann, Lutz & Gerner, Hans-Dieter & Hübler, Olaf, 2013. "Investment under Company-Level Pacts," IZA Discussion Papers 7195, Institute for the Study of Labor (IZA).
  14. Uwe Cantner & Wolfgang Gerstlberger & Ipsita Roy, 2014. "Works Councils, Training Activities and Innovation: A Study of German Firms," Jena Economic Research Papers 2014-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  15. Alexander Dilger, 2006. "Kooperation zwischen Betriebsrat und Management, Die Sicht beider Seiten und deren Folgen," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(5), pages 562-587, September.
  16. Aerts, Kris & Kraft, Kornelius & Lang, Julia, 2013. "Profit-sharing and innovation," ZEW Discussion Papers 13-114, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  17. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The Long Awaited Reform of the German Works Constitution Act," IZA Discussion Papers 422, Institute for the Study of Labor (IZA).

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