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The effects of collective bargaining on firm performance : new evidence based on stochastic production frontiers and multiply imputed German establishment data

  • Jensen, Uwe
  • Rässler, Susanne

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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    "This paper makes three contributions to the literature on the effects of collective bargaining on the performance of German establishments. We include the analysis of firms' efficiency and we model productivity and efficiency simultaneously. Confronted with 25 % observations with missing values, we check the missing data mechanisms and find effects of firm size and collective bargaining on it, among others. After proper multiple imputation of the missing values - thus avoiding obvious nonresponse bias -, the results on the collective bargaining effects on productivity and efficiency change significantly. Finally, we suggest to multiply impute implausible zero values in the capital proxy as well." (Author's abstract, IAB-Doku) ((en))

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    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB-Forschungsbericht with number 200703.

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    Length: 42 pages
    Date of creation: 02 Feb 2007
    Date of revision:
    Handle: RePEc:iab:iabfob:200703
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    1. Thorsten Schank, 2005. "Are overtime plants more efficient than standard-time plants? A stochastic production frontier analysis using the IAB Establishment Panel," Empirical Economics, Springer, vol. 30(3), pages 693-710, October.
    2. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003. "German works councils in the production process," Discussion Papers 21, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. 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).
    4. Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2002. "Works Councils – Sand or Grease in the Operation of German Firms?," IZA Discussion Papers 648, Institute for the Study of Labor (IZA).
    5. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
    6. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, June.
    7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
    8. William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics 0206006, EconWPA.
    9. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September.
    10. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
    11. RITTER, Christian & SIMAR, Leopold, 1994. "Pitfalls of Normal-Gamma Stochastic Frontier Models," CORE Discussion Papers 1994041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Jensen, Uwe & Rässler, Susanne, 2006. "Stochastic production frontiers with multiply imputed German establishment data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(2), pages 277-295.
    13. Uwe Jensen, 2005. "Misspecification Preferred: The Sensitivity of Inefficiency Rankings," Journal of Productivity Analysis, Springer, vol. 23(2), pages 223-244, 05.
    14. Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August.
    15. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    16. Kölling, Arnd & Rässler, Susanne, 2004. "Editing and multiply imputing German establishment panel data to estimate stochastic production frontier models," IAB Discussion Paper 200405, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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