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The Effect of Works Councils on Employment Change

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Author Info
John T. Addison (University of South Carolina (U.S.A.), GEMF/Universidade de Coimbra (Portugal))
Paulino Teixeira () (GEMF and Faculdade de Economia, Universidade de Coimbra)

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Abstract

Despite recent changes in the relationship between unionism and various indicators of firm performance, there is one seeming constant in the Anglophone countries: unions at the workplace are associated with reduced employment growth of around -2.5% a year. Using German data, we examine the impact of the works council – that country’s form of workplace representation – on employment change, 1993-2001. The German institution appears to have much the same negative effect on employment growth. That said, survival bias seems to play a small role, and works councils do not seem to further slow the tortuous pace of employment adjustment in Germany.

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Publisher Info
Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2005-06.

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Length: 43 pages
Date of creation: 2005
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Publication status: Published in Industrial Relations, 45(1), 2006, pages 1-24
Handle: RePEc:gmf:wpaper:2005-06

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Montgomery, Edward, 1989. "Employment and Unemployment Effects of Unions," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 170-90, April. [Downloadable!] (restricted)
  2. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
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  3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  4. Richard J. Long, 1993. "The impact of unionization on employment growth of Canadian companies," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 46(4), pages 691-703, July.
  5. repec:att:wimass:19901 is not listed on IDEAS
  6. Burgess, Simon & Knetter, Michael & Michelacci, Claudio, 2000. "Employment and Output Adjustment in the OECD: A Disaggregate Analysis of the Role of Job Security Provisions," Economica, London School of Economics and Political Science, vol. 67(267), pages 419-35, August. [Downloadable!] (restricted)
  7. Olaf H¸bler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, 09. [Downloadable!] (restricted)
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  8. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December. [Downloadable!] (restricted)
  9. D Blanchflower & S Burgess, 1996. "New Technology and Jobs: Comparative Evidence from a Two Country Study," CEP Discussion Papers 0285, Centre for Economic Performance, LSE.
  10. Newey, Whitney K & Powell, James L & Walker, James R, 1990. "Semiparametric Estimation of Selection Models: Some Empirical Results," American Economic Review, American Economic Association, vol. 80(2), pages 324-28, May. [Downloadable!] (restricted)
  11. Booth, Alison L & McCulloch, Andrew, 1999. "Redundancy Pay, Unions and Employment," Manchester School, University of Manchester, vol. 67(3), pages 346-66, June. [Downloadable!] (restricted)
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  1. Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006. "Works councils and the anatomy of wages," ZEW Discussion Papers 06-86, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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