Advanced Search
MyIDEAS: Login to save this paper or follow this series

Nonunion Worker Representation, Foreign Owners and the Performance of Establishments

Contents:

Author Info

  • Uwe Jirjahn
  • Steffen Mueller

Abstract

Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower productivity in foreign-owned establishments. Moreover, the estimates show that the interaction of works councils with the broader industrial relations system also depends on the type of ownership. Works council incidence and collective bargaining coverage have a positive interaction effect on productivity in domestic-owned establishments. No such interaction effect can be found in foreign-owned establishments.

Download Info

If 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.
File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2011-03.pdf
File Function: First version, 2011
Download Restriction: no

Bibliographic Info

Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2011-03.

as in new window
Length: 33 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:trr:wpaper:201103

Contact details of provider:
Postal: B IV, VWL, D-54286 Trier
Phone: +49 (0) 651 201-2739
Fax: +49 (0) 651 201-3934
Web page: http://www.uni-trier.de/index.php?id=2118
More information through EDIRC

Related research

Keywords: Works Council; Foreign Owners; Collective Bargaining; Productivity;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Wagner, Joachim, 2005. "German Works Councils and Productivity: First Evidence from a Nonparametric Test," IZA Discussion Papers 1757, Institute for the Study of Labor (IZA).
  2. Barba Navaretti, Giorgio & Checchi, Daniele & Turrini, Alessandro Antonio, 2003. "Adjusting Labour Demand: Multinational versus National Firms- A Cross-European Analysis," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3751, C.E.P.R. Discussion Papers.
  3. Agell, Jonas, 1999. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(453), pages F143-64, February.
  4. G–rg, Holger & Eric Strobl, 2002. ""Footloose" Multinationals?," Royal Economic Society Annual Conference 2002, Royal Economic Society 89, Royal Economic Society.
  5. Jan Erik Askildsen & Uwe Jirjahn & Stephan C. Smith, 2002. "Works Councils and Environmental Investment: Theory and Evidence from German Panel Data," CESifo Working Paper Series 785, CESifo Group Munich.
  6. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "German works councils old and new: incidence, coverage and determinants," Discussion Papers, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics 10, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  7. John S. Heywood & Uwe Jirjahn, 2002. "Payment schemes and gender in Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(1), pages 44-64, October.
  8. 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, University of Lüneburg, Institute of Economics 22, University of Lüneburg, Institute of Economics.
  9. Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
  10. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(467), pages F672-94, November.
  11. William N. Cooke, 1997. "The Influence of industrial relations factors on U.S. foreign direct investment abroad," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 3-17, October.
  12. 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.
  13. Alex Bryson, 2004. "Unions and Workplace Closure in Britain, 1990-1998," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 42(2), pages 282-302, 06.
  14. Mario F. Bognanno & Michael P. Keane & Donghoon Yang, 2005. "The influence of wages and industrial relations environments on the production location decisions of U.S. multinational corporations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(2), pages 171-200, January.
  15. Derek C. Jones & Takao Kato, 2011. "The The Impact of Teams on Output, Quality and Downtime: An Empirical Analysis Using Individual Panel Data," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(2), pages 215-240, January.
  16. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Scholarly Articles 3445092, Harvard University Department of Economics.
  17. 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, Scottish Economic Society, vol. 50(4), pages 471-491, 09.
  18. Woessmann, Ludger & West, Martin R., 2002. "Class-Size Effects in School Systems Around the World: Evidence from Between-Grade Variation in TIMSS," IZA Discussion Papers 485, Institute for the Study of Labor (IZA).
  19. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 24(1), pages 203-24, Winter.
  20. Hijzen, Alexander & Martins, Pedro S. & Schank, Thorsten & Upward, Richard, 2010. "Do Foreign-Owned Firms Provide Better Working Conditions Than Their Domestic Counterparts? A Comparative Analysis," IZA Discussion Papers 5259, Institute for the Study of Labor (IZA).
  21. Katzner, Donald W., 1995. "Participatory decision-making in the firm," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 26(2), pages 221-236, March.
  22. Francesca Fabbri & Jonathan E. Haskel & Matthew J. Slaughter, 2003. "Does Nationality Of Ownership Matter For Labor Demands?," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(2-3), pages 698-707, 04/05.
  23. Freeman, Richard B. & Kruse, Douglas & Blasi, Joseph, 2008. "The same yet different: Worker reports on labour practices and outcomes in a single firm across countries," Labour Economics, Elsevier, Elsevier, vol. 15(4), pages 749-770, August.
  24. Conyon, Martin J, et al, 2002. "The Productivity and Wage Effects of Foreign Acquisition in the United Kingdom," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 50(1), pages 85-102, March.
  25. Joshua D. Angrist, 1998. "Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants," Econometrica, Econometric Society, Econometric Society, vol. 66(2), pages 249-288, March.
  26. Morikawa, Masayuki, 2010. "Labor unions and productivity: An empirical analysis using Japanese firm-level data," Labour Economics, Elsevier, Elsevier, vol. 17(6), pages 1030-1037, December.
  27. John Heywood & Uwe Jirjahn & Georgi Tsertsvardze, 2010. "Hiring older workers and employing older workers: German evidence," Journal of Population Economics, Springer, Springer, vol. 23(2), pages 595-615, March.
  28. Christian Bellak, 2004. "How Domestic and Foreign Firms Differ and Why Does It Matter?," Department of Economics Working Papers, Vienna University of Economics, Department of Economics wuwp087, Vienna University of Economics, Department of Economics.
  29. Margit Osterloh & Bruno Frey, 2006. "Shareholders Should Welcome Knowledge Workers as Directors," Journal of Management and Governance, Springer, Springer, vol. 10(3), pages 325-345, September.
  30. Morris M. Kleiner & Richard B. Freeman, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, American Economic Association, vol. 90(2), pages 219-223, May.
  31. Sourafel Girma & Holger Görg, 2003. "Outsourcing, Foreign Ownership and Productivity: Evidence from UK Establishment Level Data," Discussion Papers of DIW Berlin 361, DIW Berlin, German Institute for Economic Research.
  32. Cornelissen, Thomas & Heywood, John S. & Jirjahn, Uwe, 2011. "Performance pay, risk attitudes and job satisfaction," Labour Economics, Elsevier, Elsevier, vol. 18(2), pages 229-239, April.
  33. Uwe Jirjahn, 2009. "The Introduction of Works Councils in German Establishments - Rent Seeking or Rent Protection?," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 47(3), pages 521-545, 09.
  34. Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, 2009. "The takeover and selection effects of foreign-owned establishments: an analysis using linked employer–employee data," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 145(2), pages 293-317, July.
  35. John Logan, 2006. "The Union Avoidance Industry in the United States," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 44(4), pages 651-675, December.
  36. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Working Papers, University of Zurich, Institute for Strategy and Business Economics (ISU) 0116, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Nov 2010.
  37. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, Elsevier, vol. 45(10), pages 1851-1875, December.
  38. Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics 16, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  39. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003. "German works councils in the production process," Discussion Papers, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics 21, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  40. Steffen Mueller, 2008. "Capital stock approximation using firm level panel data," Working Papers, Bavarian Graduate Program in Economics (BGPE) 038, Bavarian Graduate Program in Economics (BGPE).
  41. Richard Harris & Catherine Robinson, 2003. "Foreign Ownership and Productivity in the United Kingdom Estimates for U.K. Manufacturing Using the ARD," Review of Industrial Organization, Springer, Springer, vol. 22(3), pages 207-223, May.
  42. Axel Dreher & Noel Gaston, 2007. "Has Globalisation Really had no Effect on Unions?," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 60(2), pages 165-186, 05.
  43. Carola M. Frege, 2002. "A Critical Assessment of the Theoretical and Empirical Research on German Works Councils," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 40(2), pages 221-248, 06.
  44. Steffen Mueller, 2011. "Works Councils and Firm Profits Revisited," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 49(Supplemen), pages s27-s43, 06.
  45. Steffen Mueller, 2012. "Works Councils and Establishment Productivity," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 65(4), pages 880-898, October.
  46. Peter B. Doeringer & Christine Evans-Klock & David G. Terkla, 1998. "Hybrids or hodgepodges? Workplace practices of Japanese and domestic startups in the United States," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 171-186, January.
  47. Uwe Jirjahn, 2010. "Works councils and employment growth in German establishments," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 34(3), pages 475-500.
  48. Smith, Stephen C., 1991. "On the economic rationale for codetermination law," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 16(3), pages 261-281, December.
  49. Jens Mohrenweiser & Paul Marginson & Uschi Backes-Gellner, 2009. "What Triggers the Establishment of a Works Council?," Working Papers, University of Zurich, Institute for Strategy and Business Economics (ISU) 0101, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2010.
  50. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 169-189, Spring.
  51. Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(407), pages 835-54, July.
  52. John Addison & Stanley Siebert & Joachim Wagner & Xiangdong Wei, 2000. "Worker Participation and Firm Performance: Evidence from Germany and Britain," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 38(1), pages 7-48, 03.
  53. Uwe Jirjahn & Kornelius Kraft, 2011. "Do Spillovers Stimulate Incremental or Drastic Product Innovations? Evidence from German Establishment Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 73(4), pages 509-538, 08.
  54. Steffen Mueller, 2009. "Are the firm owners really worse off with a works council?," Working Papers, Bavarian Graduate Program in Economics (BGPE) 081, Bavarian Graduate Program in Economics (BGPE).
  55. Uwe Jirjahn & Kornelius Kraft, 2007. "Intra-firm Wage Dispersion and Firm Performance - Is There a Uniform Relationship?," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 60(2), pages 231-253, 05.
  56. Gaston, Noel, 2002. "The Effects of Globalisation on Unions and the Nature of Collective Bargaining," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 17, pages 377-396.
  57. John Schmitt & Ben Zipperer, 2007. "Dropping the Ax: Illegal Firings During Union Election Campaigns," CEPR Reports and Issue Briefs, Center for Economic and Policy Research (CEPR) 2007-01, Center for Economic and Policy Research (CEPR).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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.
  2. 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, University of Antwerp, Faculty of Applied Economics 2013016, University of Antwerp, Faculty of Applied Economics.
  3. 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, Verein für Socialpolitik / German Economic Association 79829, Verein für Socialpolitik / German Economic Association.
  4. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics, University of Trier, Department of Economics 2013-07, University of Trier, Department of Economics.
  5. 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, Utrecht School of Economics 13-05, Utrecht School of Economics.
  6. 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, Verein für Socialpolitik / German Economic Association 79846, Verein für Socialpolitik / German Economic Association.
  7. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 13-080, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics, University of Trier, Department of Economics 2014-09, University of Trier, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:trr:wpaper:201103. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthias Neuenkirch).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.