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The impact of Dutch works councils according to managers

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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 Dutch works councils on firm performance. 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. Inspired by the German study of Jirjahn and Smith (2006), we analyze which determinants influence management’s attitude toward employee participation in the Netherlands. We establish a preponderant influence emanating from the works council’s role attitude and management’s leadership style.

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    File URL: http://dspace.library.uu.nl/bitstream/handle/1874/36700/09-14.pdf
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    Bibliographic Info

    Paper provided by Utrecht School of Economics in its series Working Papers with number 09-14.

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    Length: 20 pages
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:use:tkiwps:0914

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    Related research

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

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    References

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    1. 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, London School of Economics, vol. 42(2), pages 255-281, 06.
    2. Addison, John T., 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," IZA Discussion Papers 1620, Institute for the Study of Labor (IZA).
    3. 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.
    4. Annette van den Berg, 2004. "The Contribution of Work Representation to Solving the Governance Structure Problem," Journal of Management and Governance, Springer, vol. 8(2), pages 129-148.
    5. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
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