Works Councils, Labor Productivity and Plant Heterogeneity: Evidence from Quantile Regressions
Using quantile regressions and a rich cross section data set for German manufacturing plants, this paper reports that the impact of works councils on labor productivity varies along the conditional distribution of value added per employee. It emerges that the positive and statistically significant effect of works council presence estimated by ordinary least squares now vanishes for large parts of this distribution. According to our results, such an effect can only be detected in plants at the top end of the conditional productivity distribution – plants that can be considered ‘over achievers.’ We would speculate that this might be because only highly competent managers can cooperate with a works council in a way that much enhances productivity.
|Date of creation:||Nov 2004|
|Publication status:||published in: Jahrbücher für Nationalökonomie und Statistik , 2006, 226 (5), 505-518|
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- John T. Addison & Claus Schnabel & Joachim Wagner, 2004.
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- Addison, John T. & Bellmann, Lutz & Schnabel, Claus & Wagner, Joachim, 2002. "The reform of the German works constitution act: a critical assessment," Discussion Papers 16, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2006.
"Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 675-694, December.
- Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2003. "Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions," Emory Economics 0323, Department of Economics, Emory University (Atlanta).
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