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Managerial perceptions of works councils’ effectiveness in the Netherlands

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  • J.E. van den Berg
  • Y.K. Grift
  • A. van Witteloostuijn
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    Abstract

    Although works councils have, by and large, equally extensive legal rights in Germany and the Netherlands, this is the first econometric analysis that investigates the influence of works councils on firm performance for the Netherlands. We use a nation-wide Dutch dataset with information on management’s perceptions of the works council’s impact on their firms’ efficiency and innovation. Following Jirjahn and Smith (2006), we find that managerial perceptions crucially depend on the firm’s human resource management policies and market strategies. Additionally, we argue that managerial perceptions are related to the works council’s role attitude and management’s leadership style. For this argument, we find support, too.

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    File URL: http://dspace.library.uu.nl/bitstream/handle/1874/31423/08-05.pdf
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    Bibliographic Info

    Paper provided by Utrecht School of Economics in its series Working Papers with number 08-05.

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    Length: 23 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:use:tkiwps:0805

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    Related research

    Keywords: works councils; managerial response; effectiveness; efficiency; innovation;

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    1. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2003. "The Course of Research into the Economic Consequences of German Works Councils," IZA Discussion Papers 878, Institute for the Study of Labor (IZA).
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