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Active Owners and the Failure of Newly Adopted Works Councils

  • Uwe Jirjahn
  • Jens Mohrenweiser

Using representative data from the IAB Establishment Panel, we show that employees in establishments with active owners are less likely to introduce a works council. Moreover, we show that, in case of an introduction, the new works council is less likely to survive if active owners are present. Our findings conform to the hypothesis that active owners oppose codetermination because it reduces the utility they gain from being the ultimate bosses within the establishment.

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File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2013-04.pdf
File Function: First version, 2013
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Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2013-04.

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Length: 29 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:trr:wpaper:201304
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Web page: http://www.uni-trier.de/index.php?id=2118

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  1. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
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  3. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes-Gellner, 2010. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Research Papers in Economics 2010-06, University of Trier, Department of Economics.
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  12. Martin Behrens, 2009. "Still Married after All These Years? Union Organizing and the Role of Works Councils in German Industrial Relations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 62(3), pages 275-293, April.
  13. Joachim Wagner & Thorsten Schank & Claus Schnabel & John T. Addison, 2006. "Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(5), pages 505-518, September.
  14. Zwick, Thomas, 2007. "Apprenticeship training in Germany - investment or productivity driven?," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 193-204.
  15. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September.
  16. Smith, Stephen C., 1991. "On the economic rationale for codetermination law," Journal of Economic Behavior & Organization, Elsevier, vol. 16(3), pages 261-281, December.
  17. Uwe Jirjahn, 2008. "On the Determinants of Shift Work and Overtime Work: Evidence from German Establishment Data," British Journal of Industrial Relations, London School of Economics, vol. 46(1), pages 133-168, 03.
  18. Jens Mohrenweiser & Paul Marginson & Uschi Backes-Gellner, 2009. "What Triggers the Establishment of a Works Council?," Working Papers 0101, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2010.
  19. John Schmitt & Ben Zipperer, 2007. "Dropping the Ax: Illegal Firings During Union Election Campaigns," CEPR Reports and Issue Briefs 2007-01, Center for Economic and Policy Research (CEPR).
  20. Adrienne E. Eaton, 1994. "The Survival of Employee Participation Programs in Unionized Settings," ILR Review, Cornell University, ILR School, vol. 47(3), pages 371-389, April.
  21. Burgess, Simon & Lane, Julia & Stevens, David, 2000. "Job Flows, Worker Flows, and Churning," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 473-502, July.
  22. Uwe Jirjahn & Steffen Mueller, 2011. "Nonunion Worker Representation, Foreign Owners and the Performance of Establishments," Research Papers in Economics 2011-03, University of Trier, Department of Economics.
  23. Uschi Backes-Gellner & Jens Mohrenweiser & Kerstin Pull, 2011. "When Does Regulation Bite? Co-Determination and the Nature of Employment Relations," Working Papers 0147, University of Zurich, Institute for Strategy and Business Economics (ISU).
  24. Jens Stegmaier, 2012. "Effects of Works Councils on Firm-Provided Further Training in Germany," British Journal of Industrial Relations, London School of Economics, vol. 50(4), pages 667-689, December.
  25. Joachim Wagner, 2005. "German Works Councils and Productivity: First Evidence from a Nonparametric Test," Working Paper Series in Economics 14, University of Lüneburg, Institute of Economics.
  26. Jan Erik Askildsen & Uwe Jirjahn & Stephan C. Smith, 2002. "Works Councils and Environmental Investment: Theory and Evidence from German Panel Data," CESifo Working Paper Series 785, CESifo Group Munich.
  27. Uwe Jirjahn, 2009. "The Introduction of Works Councils in German Establishments - Rent Seeking or Rent Protection?," British Journal of Industrial Relations, London School of Economics, vol. 47(3), pages 521-545, 09.
  28. John Logan, 2006. "The Union Avoidance Industry in the United States," British Journal of Industrial Relations, London School of Economics, vol. 44(4), pages 651-675, December.
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  30. Uwe Jirjahn & Kornelius Kraft, 2011. "Do Spillovers Stimulate Incremental or Drastic Product Innovations? Evidence from German Establishment Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(4), pages 509-538, 08.
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  34. Demsetz, Harold, 1983. "The Structure of Ownership and the Theory of the Firm," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 375-90, June.
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