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Works councils, training activities and innovation: a study of German firms

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  • Ipsita Roy
  • Uwe Cantner
  • Wolfgang Gerstlberger

Abstract

Building on the distinction between general and technical human capital proposed by Becker (1962), the authors undertake a cross-sectional analysis on the role of works councils in the provision of workplace human resource training for innovative management in medium and large-size private sector establishments in Germany. Results from the first part of the empirical analysis confirm theoretical predictions that works councils are strongly and positively correlated with the provision of general training, while no such relation is found with respect to technical training. Addressing next the potential endogeneity issue, results from an instrumental variable estimation on the correlation between training types and innovation performance provide support that works councils are an effective instrument for promoting general training for incremental innovation in establishments, whereas technical training is found to correlate significantly with radical innovation when instrumented by the share of apprentices.

Suggested Citation

  • Ipsita Roy & Uwe Cantner & Wolfgang Gerstlberger, 2020. "Works councils, training activities and innovation: a study of German firms," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 20(3/4), pages 269-294.
    • Handle: RePEc:ids:ijhrdm:v:20:y:2020:i:3/4:p:269-294
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    Cited by:

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    2. Alhusen, Harm & Bennat, Tatjana & Bizer, Kilian & Cantner, Uwe & Horstmann, Elaine & Kalthaus, Martin & Proeger, Till & Sternberg, Rolf G. & Töpfer, Stefan, 2019. "Measuring the "doing-using-interacting mode" of innovation in SMEs - A qualitative approach," ifh Working Papers 23/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    3. Medase, Kehinde, 2019. "The Impact of the Heterogeneity of Employees’ Qualifications on Firm-level Innovation Evidence from Nigerian Firms," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203563, Verein für Socialpolitik / German Economic Association.
    4. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Collective Bargaining and Innovation in Germany: A Case of Cooperative Industrial Relations?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 73-121, January.

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    More about this item

    Keywords

    general training; technical training; works councils; instrumental variable; innovation.;
    All these keywords.

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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