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Foreign Owners and the Quality of Industrial Relations in Germany

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  • Verena Dill
  • Uwe Jirjahn

Abstract

German works councils provide a highly developed mechanism for codetermination designed to increase trust and cooperation within firms. This study examines whether or not the functioning of works councils depends on the type of ownership. Comparing domestic- and foreign-owned firms in Germany, we find that works councils and managers in foreign-owned firms are less likely to cooperate. The finding fits the notion that the activities of foreign multinational companies can involve tensions with the institutional framework of the host country.

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File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2013-07.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2013-07.

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Length: 37 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:trr:wpaper:201307

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Web page: http://www.uni-trier.de/index.php?id=2118
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Related research

Keywords: Corporate Globalization; Foreign Ownership; Works Council; Codetermination; Cooperation;

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References

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  22. Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
  23. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
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