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The economic effects of works councils: channels and conditions. Using secondary data to test a new theoretical model

Author

Listed:
  • Jan Ekke Wigboldus

    (Wigboldus Consultraining Links, the Netherlands; University of Twente, the Netherlands)

  • Yolanda Grift

    (Utrecht University School of Economics, the Netherlands)

  • Annette van den Berg

    (Utrecht University School of Economics, the Netherlands)

  • Jan Kees Looise

    (University of Twente, the Netherlands)

Abstract

German studies already have supported the existing positive economic effects of works councils, but failed to explain how these effects are produced. New case study based research from the Netherlands has provided a theory consisting of three channels to create economic impact, also including a set of necessary conditions. This article presents a secondary analysis of this theory with the use of a large data set. This quantitative analysis further supports the theory and contains interesting nuances about how the channels work, in particular about the role of the availability of sufficient works council candidates at elections.

Suggested Citation

  • Jan Ekke Wigboldus & Yolanda Grift & Annette van den Berg & Jan Kees Looise, 2016. "The economic effects of works councils: channels and conditions. Using secondary data to test a new theoretical model," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(3), pages 535-565, August.
    • Handle: RePEc:sae:ecoind:v:37:y:2016:i:3:p:535-565
    DOI: 10.1177/0143831X14551998
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    References listed on IDEAS

    as
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    2. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
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    5. John T. Addison, 2009. "The Economics of Codetermination," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-10424-2, April.
    6. Jan Kees Looise & Michiel Drucker, 2003. "Dutch Works Councils in Times of Transition: The Effects of Changes in Society, Organizations and Work on the Position of Works Councils," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 24(3), pages 379-409, August.
    7. Olaf Hübler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, September.
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