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Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions

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Author Info
Joachim Wagner () (Institute of Economics, University of Lüneburg)
Thorsten Schank () (Chair of Labour and Regional Economics, Friedrich-Alexander-University Erlangen-Nuremberg)
Claus Schnabel () (Chair of Labour and Regional Economics, Friedrich-Alexander-University Erlangen-Nuremberg)
John T. Addison () (Department of Economics, University of South Carolina (US))

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Abstract

Using OLS and quantile regression methods and rich cross-section data sets for western and eastern Germany, this paper demonstrates that the impact of works council presence on labor productivity varies between manufacturing and services, between plants that are or are not covered by collective bargaining, and along the conditional distribution of labor productivity. No productivity effects of works councils are found for the service sector and in manufacturing plants not covered by collective bargaining. Besides demonstrating that it is important to look at evidence based on more than one data set, our empirical findings point to the efficacy of supplementing OLS with quantile regression estimates when investigating the behavior of heterogeneous plants.

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Publisher Info
Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 22.

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Length: 29 pages
Date of creation: 21 Feb 2006
Date of revision:
Handle: RePEc:lue:wpaper:22

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Related research
Keywords: Labor productivity; works councils; quantile regressions; heterogeneous firms;

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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. Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2006. "Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 675-694, December. [Downloadable!] (restricted)
    Other versions:
  2. Sophia Dimelis & Helen Louri, 2002. "Foreign ownership and production efficiency: a quantile regression analysis," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 449-469, July.
  3. 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, Blackwell Publishers Ltd/London School of Economics, vol. 42(2), pages 255-281, 06. [Downloadable!] (restricted)
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  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  5. Raul A. Barreto & Anthony W. Hughes, 2004. "Under Performers and Over Achievers: A Quantile Regression Analysis of Growth," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 17-35, 03. [Downloadable!] (restricted)
  6. Wagner, Joachim & Addison, John T. & Schnabel, Claus & Schank, Thorsten, 2004. "Works Councils, Labor Productivity and Plant Heterogeneity: Evidence from Quantile Regressions," IZA Discussion Papers 1414, Institute for the Study of Labor (IZA). [Downloadable!]
  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. 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.
  9. 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. [Downloadable!]
  10. Daniel S. Hamermesh, 2000. "The Craft of labormetrics," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 53(3), pages 363-380, April.
  11. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall. [Downloadable!] (restricted)
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  12. 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!]
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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. Lena Koller & Claus Schnabel & Joachim Wagner, 2007. "Schwellenwerte im Arbeitsrecht: Höhere Effizienz und Transparent durch Vereinheitlichung," Working Paper Series in Economics 40, University of Lüneburg, Institute of Economics. [Downloadable!]
  2. Joachim Wagner, 2007. "Why more West than East German fimrs export," Working Paper Series in Economics 42, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  3. Joachim Wagner, 2007. "Productivity and Size of the Export Market - Evidence for West and East Geman Plants. 2004," Working Paper Series in Economics 43, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  4. Ingrid Ott & Susanne Soretz, 2006. "Nachhaltige Entwicklung durch endogeneUmweltwahrnehmung," Working Paper Series in Economics 24, University of Lüneburg, Institute of Economics. [Downloadable!]
  5. Joachim Wagner, 2007. "Enty, Exit and Productivitry - Empirical Results for German Manufacturing Industries," Working Paper Series in Economics 44, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  6. Jens Korunig, 2007. "Regulierung des Netzmonopolisten durch Verbot von Peak-load Pricing?," Working Paper Series in Economics 36, University of Lüneburg, Institute of Economics. [Downloadable!]
  7. Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Die Wirkung des Betriebsverfassungsgesetzes am Beispiel der Freistellung von Betriebsräten – ein Beitrag zur Rechtstatsachenforschung," Working Papers 0104, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  8. Ingrid Ott & Christian Papilloud, 2006. "Converging institutions. Shaping the relationships between nanotechnologies, economy and society," Working Paper Series in Economics 32, University of Lüneburg, Institute of Economics. [Downloadable!]
  9. Ingrid Ott & Susanne Soretz, 2006. "Governmental activity and private capital adjustment," Working Paper Series in Economics 26, University of Lüneburg, Institute of Economics. [Downloadable!]
  10. Joachim Wagner, 2007. "Job-Motor Mittelstand?Arbeitsplatzdynamik und Betriebsgröße in der westdeutschen Industrie," Working Paper Series in Economics 47, University of Lüneburg, Institute of Economics. [Downloadable!]
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