Works Councils and Heterogeneous Firms
AbstractTheoretical analyses of the effects of works councils show ambiguous results. Therefore an empirical investigation of the issue is inevitable. The results so far are mixed, frequently a positive effect on productivity, but a negative one on profits is found. The problem of both theoretical and empirical studies is the assumption of firm homogeneity. To close this gap, we take into account firm heterogeneity proxied by the percentage of highly qualified employees in the workforce. The theoretical result that the positive productivity effect is more pronounced in firms with well-defined majorities is confirmed in the empirical part of the paper. The results on profitability are less favourable for works councils: in those firms where the productivity effect is significant, the profitability effect is negative, except for firms with a very high percentage of highly qualified employees. Turning to the effect of collective agreements, they seem to mitigate the problem of reduced profitability in firms with no clear majority in the structure of qualifications.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät in its series Jenaer Schriften zur Wirtschaftswissenschaft with number 16/2006.
Date of creation: 21 May 2006
Date of revision:
Postal: If a paper is not downloadable, please contact the author(s) or the library of University of Jena, not the archive maintainer.
Find related papers by JEL classification:
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
This paper has been announced in the following NEP Reports:
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.:
- Uwe Cantner & Kristina Dre�ler & Jens J. Kr�ger, 2005.
"Knowledge Compensation in the German Automobile Industry,"
Jenaer Schriften zur Wirtschaftswissenschaft
11/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
- Uwe Cantner & Jens Kruger & Kristina von Rhein, 2011. "Knowledge compensation in the German automobile industry," Applied Economics, Taylor and Francis Journals, vol. 43(22), pages 2941-2951.
- Susanne Büchner & Andreas Freytag & Luis G. Gonzalez & Werner Güth, 2006.
"Bribery and Public Procurement - An Experimental Study -,"
Papers on Strategic Interaction
2005-30, Max Planck Institute of Economics, Strategic Interaction Group.
- Susanne Büchner & Andreas Freytag & Luis González & Werner Güth, 2008. "Bribery and public procurement: an experimental study," Public Choice, Springer, vol. 137(1), pages 103-117, October.
- Susanne Büchner & Andreas Freytag & Luis G. Gonzalez & Werner Güth, 2006. "Bribery and Public Procurement - An Experimental Study," Jenaer Schriften zur Wirtschaftswissenschaft 06/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
- 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.
- Sebastian von Engelhardt, 2006. "Die ökonomischen Eigenschaften von Software," Jenaer Schriften zur Wirtschaftswissenschaft 14/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
- Joachim Wagner & Thorsten Schank & Claus Schnabel & John T. Addison, 2006.
"Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(5), pages 505-518, September.
- Joachim Wagner & Thorsten Schank & Claus Schnabel & John T. Addison, 2006. "Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions," GEMF Working Papers 2006-03, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Joachim Wagner & Thorsten Schank & Claus Schnabel & John T. Addison, 2006. "Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions," Working Paper Series in Economics 22, University of Lüneburg, Institute of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.