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Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions

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Author Info

  • Joachim Wagner

    ()
    (Universitaet Lueneburg)

  • Thorsten Schank

    ()
    (Universitaet Erlangen-Nuernberg)

  • Claus Schnabel

    ()
    (Universitaet Erlangen-Nuernberg)

  • John T. Addison

    ()
    (University of South Carolina)

Abstract

Using OLS and quantile regression methods and rich cross-section data sets for western and eastern Germany, this paper demonstrates that the impact of works council presence on labor productivity varies between manufacturing and services, between plants that are or are not covered by collective bargaining, and along the conditional distribution of labor productivity. No productivity effects of works councils are found for the service sector and in manufacturing plants not covered by collective bargaining. Besides demonstrating that it is important to look at evidence based on more than one data set, our empirical findings point to the efficacy of supplementing OLS with quantile regression estimates when investigating the behavior of heterogeneous plants.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 226 (2006)
Issue (Month): 5 (September)
Pages: 505-518

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Handle: RePEc:jns:jbstat:v:226:y:2006:i:5:p:505-518

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Related research

Keywords: Labor productivity; works councils; quantile regressions; heterogeneous firms;

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References

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  1. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2003. "The Course of Research into the Economic Consequences of German Works Councils," IZA Discussion Papers 878, Institute for the Study of Labor (IZA).
  2. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, December.
  3. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
  4. Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2006. "Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 675-694, December.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  6. 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.
  7. Wagner, Joachim & Addison, John T. & Schnabel, Claus & Schank, Thorsten, 2004. "Works Councils, Labor Productivity and Plant Heterogeneity: Evidence from Quantile Regressions," IZA Discussion Papers 1414, Institute for the Study of Labor (IZA).
  8. Raul A. Barreto & Anthony W. Hughes, 2004. "Under Performers and Over Achievers: A Quantile Regression Analysis of Growth," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 17-35, 03.
  9. Richard B. Freeman & Edward P. Lazear, 1995. "An Economic Analysis of Works Councils," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 27-52 National Bureau of Economic Research, Inc.
  10. Sophia Dimelis & Helen Louri, 2002. "Foreign ownership and production efficiency: a quantile regression analysis," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 449-469, July.
  11. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  12. Addison, John T & Schnabel, Claus & Wagner, Joachim, 2001. "Work Councils in Germany: Their Effects on Establishment Performance," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 659-94, October.
  13. Simon Renaud, 2006. "Works Councils and Heterogeneous Firms," Jenaer Schriften zur Wirtschaftswissenschaft 16/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
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Citations

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Cited by:
  1. Joachim Wagner, 2007. "Why more West than East German fimrs export," Working Paper Series in Economics 42, University of Lüneburg, Institute of Economics.
  2. Joachim Wagner, 2007. "Productivity and Size of the Export Market Evidence for West and East German Plants, 2004," Jena Economic Research Papers 2007-028, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Ingrid Ott & Susanne Soretz, 2006. "Nachhaltige Entwicklung durch endogeneUmweltwahrnehmung," Working Paper Series in Economics 24, University of Lüneburg, Institute of Economics.
  4. Grund, Christian & Schmitt, Andreas, 2013. "Works Councils, Quits and Dismissals in Germany," IZA Discussion Papers 7361, Institute for the Study of Labor (IZA).
  5. Joachim Wagner, 2007. "Job-Motor Mittelstand?Arbeitsplatzdynamik und Betriebsgröße in der westdeutschen Industrie," Working Paper Series in Economics 47, University of Lüneburg, Institute of Economics.
  6. Jens Korunig, 2007. "Regulierung des Netzmonopolisten durch Verbot von Peak-load Pricing?," Working Paper Series in Economics 36, University of Lüneburg, Institute of Economics.
  7. Ingrid Ott & Christian Papilloud, 2006. "Converging institutions. Shaping the relationships between nanotechnologies, economy and society," Working Paper Series in Economics 32, University of Lüneburg, Institute of Economics.
  8. Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Die Wirkung des Betriebsverfassungsgesetzes am Beispiel der Freistellung von Betriebsräten – ein Beitrag zur Rechtstatsachenforschung," Working Papers 0104, University of Zurich, Institute for Strategy and Business Economics (ISU).
  9. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
  10. Wagner, Joachim, 2007. "Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries," IZA Discussion Papers 2667, Institute for the Study of Labor (IZA).
  11. Lena Koller & Claus Schnabel & Joachim Wagner, 2007. "Schwellenwerte im Arbeitsrecht: Höhere Effizienz und Transparent durch Vereinheitlichung," Working Paper Series in Economics 40, University of Lüneburg, Institute of Economics.
  12. Ingrid Ott & Susanne Soretz, 2006. "Governmental activity and private capital adjustment," Working Paper Series in Economics 26, University of Lüneburg, Institute of Economics.
  13. Uwe Jirjahn, 2012. "Industrielle Beziehungen und Innovationserfolg," Research Papers in Economics 2012-02, University of Trier, Department of Economics.

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