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Nonunion Worker Representation, Foreign Owners and the Performance of Establishments

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  • 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.

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File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2011-03.pdf
File Function: First version, 2011
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Bibliographic Info

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

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Length: 33 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:trr:wpaper:201103

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Web page: http://www.uni-trier.de/index.php?id=2118
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Keywords: Works Council; Foreign Owners; Collective Bargaining; Productivity;

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References

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Citations

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Cited by:
  1. John S. Heywood & Uwe Jirjahn, 2011. "Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany," Research Papers in Economics 2011-05, University of Trier, Department of Economics.
  2. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers 13-080, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. 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.
  4. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.
  5. 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 2013016, University of Antwerp, Faculty of Applied Economics.
  6. 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 13-05, Utrecht School of Economics.
  7. 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 79846, Verein für Socialpolitik / German Economic Association.
  8. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics 2014-09, University of Trier, Department of Economics.

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