The Productivity Effect of Non-Union Representation
AbstractDeclining 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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Bibliographic InfoPaper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 074.
Length: 23 pages
Date of creation: Jun 2009
Date of revision:
worker participation; works council; productivity;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
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- Michael Beckmann & Istvàn Hegedüs, 2011. "Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data," Working papers 2011/13, Faculty of Business and Economics - University of Basel.
- Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 281-298, December.
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