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The governance of offshoring and its effects at home. The role of codetermination in the international organization of German firms

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  • Alessandro Bramucci

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  • Antonello Zanfei

Abstract

This paper focuses on the links between labor market institutions and offshoring, with specific reference to the role of codetermination in shaping the international operations of German firms. We use case studies to illustrate how works councils deal with three important aspects of offshoring processes: the timeliness of information they receive from the management, the negotiation of compensation mechanisms, and the design of alternative strategies. While we found no evidence of works councils impeding offshoring, there are elements to suggest that they may influence the way such decisions are taken and moderate their effects on employment in the home country. Copyright Associazione Amici di Economia e Politica Industriale 2015

Suggested Citation

  • Alessandro Bramucci & Antonello Zanfei, 2015. "The governance of offshoring and its effects at home. The role of codetermination in the international organization of German firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(2), pages 217-244, June.
  • Handle: RePEc:spr:epolin:v:42:y:2015:i:2:p:217-244
    DOI: 10.1007/s40812-015-0010-9
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    Keywords

    Offshoring; Labor market institutions; Codetermination; F21; J53; L22;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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