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Foreign Owners and the Quality of Industrial Relations in Germany

Author

Listed:
  • Verena Dill
  • Uwe Jirjahn

Abstract

German works councils provide a highly developed mechanism for codetermination designed to increase trust and cooperation within firms. This study examines whether or not the functioning of works councils depends on the type of ownership. Comparing domestic- and foreign-owned firms in Germany, we find that works councils and managers in foreign-owned firms are less likely to cooperate. The finding fits the notion that the activities of foreign multinational companies can involve tensions with the institutional framework of the host country.

Suggested Citation

  • Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.
  • Handle: RePEc:trr:wpaper:201307
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    File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2013-07.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
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    Cited by:

    1. Jirjahn, Uwe & Smith, Stephen C., 2017. "Nonunion Employee Representation: Theory and the German Experience with Mandated Works Councils," IZA Discussion Papers 11066, Institute for the Study of Labor (IZA).
    2. Jirjahn, Uwe, 2017. "Foreign Ownership and Intra-Firm Union Density in Germany," GLO Discussion Paper Series 149, Global Labor Organization (GLO).
    3. repec:bla:annpce:v:88:y:2017:i:3:p:201-233 is not listed on IDEAS
    4. Uwe Jirjahn, 2017. "Globalisierung und betriebliche Mitbestimmung," Research Papers in Economics 2017-05, University of Trier, Department of Economics.
    5. Uwe Jirjahn, 2015. "Research on Trade Unions and Collective Bargaining in Germany: The Contribution of Labor Economics," Research Papers in Economics 2015-10, University of Trier, Department of Economics.

    More about this item

    Keywords

    Corporate Globalization; Foreign Ownership; Works Council; Codetermination; Cooperation;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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