Socially - optimal level of co-determination of labor and the European directive on workers' councils
In the past employee interest and influence have been presented mainly through trade unions and collective bargaining (economic regulation). Socially optimal levels of co-determination may be prevented by the existence of high fixed costs of establishing councils. Job security can resolve the adverse selection problem and raise economic efficiency i.e. worker or agent will work efficiently or socially optimal. Co-determination reinforces well functioning social democracy, recent studies discover that consultation and participation increase than innovativeness of the company. The US and EU approach to employment are different under common and civil law, that differ in many ways. The US employment –at- will is liberal individualist model, laissez-faire approach and any regulation is considered to be potentially welfare reducing. And mandatory employment rights model; EU model that seeks it’s rationale in the previously mentioned market failures (agency problems, hold-up problems) caused by asymmetric information and incomplete employment contracts, and the presence of monopolies, monopsonies that reduce workers mobility. Harmonious relations between” social partners” – labor and management are the aim of the European Work Council directive. European law continues to focus on workers and shareholders interest.
|Date of creation:||18 Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Felix FitzRoy & Kornelius Kraft, 2005.
"Co-determination, Efficiency and Productivity,"
British Journal of Industrial Relations,
London School of Economics, vol. 43(2), pages 233-247, 06.
- Riccardo Peccei & Helen Bewley & Howard Gospel & Paul Willman, 2005. "Is It Good to Talk? Information Disclosure and Organizational Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 43(1), pages 11-39, 03.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38196. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.