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The Productivity Effect of Non-Union Representation

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  • Steffen Mueller

Abstract

Declining union density in many industrialized countries directs attention to alter- native ways of labor relations and worker representation as, e.g., works councils. German works councils belong to the most powerful worker representations in de- veloped countries but little is known of their causal effect on productivity. A large linked employer-employee panel is used to examine this issue. Comparing firms with and without a works council I find that firms with a works council are on average 6.5 percent more productive. I present evidence that this estimate is the lower bound to the causal productivity effect of works councils.

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File URL: http://www.bgpe.de/texte/DP/074_mueller.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 074.

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Length: 23 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:bav:wpaper:074_mueller

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Web page: http://www.bgpe.de/
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Related research

Keywords: worker participation; works council; productivity;

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Cited by:
  1. Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," Research Papers in Economics 2011-06, University of Trier, Department of Economics.
  2. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes‐Gellner, 2011. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 64(3), pages 427-447, 08.
  3. Michael Beckmann & Istvàn Hegedüs, 2011. "Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data," Working papers, Faculty of Business and Economics - University of Basel 2011/13, Faculty of Business and Economics - University of Basel.

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