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Works Councils – Sand or Grease in the Operation of German Firms?

  • Schank, Thorsten

    ()

    (University of Mainz)

  • Schnabel, Claus

    ()

    (University of Erlangen-Nuremberg)

  • Wagner, Joachim

    ()

    (Leuphana University Lüneburg)

Using a large panel data set we investigate whether works councils act as sand or grease in the operation of German firms. Stochastic production frontier analysis indicates that establishments with and without a works council do not exhibit significant differences in efficiency.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 648.

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Length: 15 pages
Date of creation: Nov 2002
Date of revision:
Publication status: published in: Applied Economics Letters, 2004, 11 (3), 159–161
Handle: RePEc:iza:izadps:dp648
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  1. Fitzroy, Felix R & Kraft, Kornelius, 1987. "Efficiency and Internal Organization: Works Councils in West German Firms," Economica, London School of Economics and Political Science, vol. 54(216), pages 493-504, November.
  2. Richard B. Freeman & Edward P. Lazear, 1995. "An Economic Analysis of Works Councils," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 27-52 National Bureau of Economic Research, Inc.
  3. Addison, John T & Schnabel, Claus & Wagner, Joachim, 2001. "Work Councils in Germany: Their Effects on Establishment Performance," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 659-94, October.
  4. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
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