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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 Mainz)

  • Schnabel, Claus

    ()
    (University of Erlangen-Nuremberg)

  • Wagner, Joachim

    ()
    (Leuphana University Lüneburg)

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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Bibliographic 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: 15 pages
Date of creation: Nov 2002
Date of revision:
Publication status: published in: Applied Economics Letters, 2004, 11 (3), 159–161
Handle: RePEc:iza:izadps:dp648

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

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References

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  1. 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.
  2. 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.
  3. Richard B. Freeman & Edward P. Lazear, 1994. "An Economic Analysis of Works Councils," NBER Working Papers 4918, National Bureau of Economic Research, Inc.
  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:
  1. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003. "German Works Councils in the Production Process," IZA Discussion Papers 812, Institute for the Study of Labor (IZA).
  2. Birgit Schultz, 2006. "Möglichkeiten und Grenzen des Matching-Ansatzes – am Beispiel der betrieblichen Mitbestimmung," IWH Discussion Papers 15, Halle Institute for Economic Research.
  3. 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].
  4. Addison, John T., 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," IZA Discussion Papers 1620, Institute for the Study of Labor (IZA).
  5. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  6. Koller, Lena, 2005. "Arbeitsrechtliche Schwellenwerte: Regelungen an der Schwelle zur Unüberschaubarkeit," Discussion Papers 40, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  7. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, 06.
  8. Joachim Wagner, 2005. "German Works Councils and Productivity: First Evidence from a Nonparametric Test," Working Paper Series in Economics 14, University of Lüneburg, Institute of Economics.
  9. Uwe Cantner & Wolfgang Gerstlberger & Ipsita Roy, 2014. "Works Councils, Training Activities and Innovation: A Study of German Firms," Jena Economic Research Papers 2014-006, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  10. Jensen, Uwe & Rässler, Susanne, 2006. "Stochastic production frontiers with multiply imputed German establishment data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(2), pages 277-295.
  11. 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.
  12. repec:iab:iabzaf:v:38:i:2/3:p:268-283 is not listed on IDEAS

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