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Works Councils and Learning: On the Dynamic Dimension of Codetermination

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  • Uwe Jirjahn

    ()
    (University of Trier, Department of Economics)

  • Jens Mohrenweiser

    ()
    (Centre for European Economic Research Mannheim)

  • Uschi Backes-Gellner

    ()
    (Institute for Strategy and Business Economics, University of Zurich)

Abstract

This study provides the first econometric analysis on the dynamic dimension of establishment-level codetermination in Germany. We hypothesize that learning implies a change in the nature and scope of codetermination over time. Using unique data from small- and medium-sized establishments, our empirical analysis provides strong evidence that learning indeed plays a crucial role in the functioning of works councils. First, the probability of an adversarial relationship between management and works council is decreasing in the age of the council. Second, the council’s age is positively associated with the probability that the council has an influence even on decisions where it has no legal powers. Third, productivity is increasing in the age of the council. Fourth, the quit rate is decreasing in the age of the council. However, the estimates also provide evidence of a codetermination life cycle.

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File URL: http://repec.business.uzh.ch/RePEc/iso/ISU_WPS/116_ISU_full.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0116.

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Length: 41 pages
Date of creation: Sep 2009
Date of revision: Nov 2010
Handle: RePEc:iso:wpaper:0116

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Keywords: Codetermination; Learning; Conflict; Cooperation; Performance;

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References

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Citations

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Cited by:
  1. Jirjahn, Uwe & Heywood, John S., 2013. "Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79829, Verein für Socialpolitik / German Economic Association.
  2. Uwe Jirjahn & Steffen Mueller, 2014. "Non-union worker representation, foreign owners, and the performance of establishments," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 140-163, January.
  3. Oberfichtner, Michael, 2013. "Works council introductions: Do they reflect workers' voice?," Discussion Papers 83, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers 13-080, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Müller, Steffen & Stegmaier, Jens, 2013. "The Dynamic Effects of Works Councils on Labor Productivity: First Evidence from Panel Data," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79846, Verein für Socialpolitik / German Economic Association.
  6. Christian Pfeifer, 2011. "The Heterogeneous Economic Consequences of Works Council Relations," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(1), pages 59-71.
  7. Kathrin Armbruster & Michael Beckmann & Dieter Kuhn, 2012. "Task Allocation and Corporate Performance: Is There a First-Mover Advantage?," Working papers 2012/07, Faculty of Business and Economics - University of Basel.
  8. Annette van den Berg & Yolanda Grift & Arjen van Witteloostuijn & Christophe Boone & Olivier Van der Brempt, 2013. "The Effect of Employee Workplace Representation on Firm Performance a Cross-Country Comparison within Europe," Working Papers 13-05, Utrecht School of Economics.
  9. 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.
  10. Gralla, Rafael & Kraft, Kornelius, 2012. "Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms," IZA Discussion Papers 7022, Institute for the Study of Labor (IZA).
  11. VAN DEN BERG, Annette & GRIFT, Yolanda & VAN WITTELOOSTUIJN, Arjen & BOONE, Christophe & VAN DER BREMPT, Olivier, 2013. "The effect of employee workplace representation on firm performance. A cross-country comparison within Europe," Working Papers 2013008, University of Antwerp, Faculty of Applied Economics.
  12. VAN DEN BERG, Annette & GRIFT, Yolanda & VAN WITTELOOSTUIJN, Arjen & BOONE, Christophe & VAN DER BREMPT, Olivier, 2013. "The effect of employee workplace representation on firm performance. A cross-country comparison within Europe," ACED Working Papers 2013016, University of Antwerp, Faculty of Applied Economics.
  13. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.

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