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Works Councils - Sand or Grease in the Operation of German Firms?

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Author Info
Schank, Thorsten () (University of Erlangen-Nuremberg)
Schnabel, Claus (University of Erlangen-Nuremberg)
Wagner, Joachim (University of Lueneburg, HWWA Hamburg and IZA Bonn)

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Abstract

Using a large panel data set we investigate whether works councils act as sand or grease in the operation of German firms. Stochastic production frontier analysis indicates that establishments with and without a works council do not exhibit significant differences in efficiency.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp648.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 648.

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Length: 14 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:iza:izadps:dp648

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Related research
Keywords: works council; codetermination; production frontier analysis; Germany;

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Find related papers by JEL classification:
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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References listed on IDEAS
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. Fitzroy, Felix R & Kraft, Kornelius, 1987. "Efficiency and Internal Organization: Works Councils in West German Firms," Economica, London School of Economics and Political Science, vol. 54(216), pages 493-504, November. [Downloadable!] (restricted)
  2. 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.
  3. Richard B. Freeman & Edward P. Lazear, 1994. "An Economic Analysis of Works Councils," NBER Working Papers 4918, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • 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. [Downloadable!]
  4. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
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Cited by:
(explanations, 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. John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
    Other versions:
  2. Joachim Wagner, 2005. "German Works Councils and Productivity: First Evidence from a Nonparametric Test," IZA Discussion Papers 1757, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Birgit Schultz, 2006. "Möglichkeiten und Grenzen des Matching-Ansatzes – am Beispiel der betrieblichen Mitbestimmung –," IWH Discussion Papers 15-06, Halle Institute for Economic Research. [Downloadable!]
  4. Jensen, Uwe & Rässler, Susanne, 2007. "The effects of collective bargaining on firm performance : new evidence based on stochastic production frontiers and multiply imputed German establishment data," IAB-Forschungsbericht 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  5. Wolf, Elke & Beblo, Miriam, 2004. "Does Work Time Flexibility Work? : An Empirical Assessment of the Efficiency Effects for German Firms," ZEW Discussion Papers 04-47, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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