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Nonunion Employee Representation: Theory and the German Experience with Mandated Works Councils

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  • Uwe Jirjahn
  • Stephen C. Smith

Abstract

Theories of how nonunion employee representation impacts firm performance, affects market equilibria, and generates externalities on labor and society are synthesized. Mandated works councils in Germany provide a particularly strong form of nonunion employee representation. A systematic review of research on the German experience with mandated works councils finds generally positive effects, though these effects depend on a series of moderating factors and some impacts remain ambiguous. Finally, key questions for empirical research on nonunion employee representation, which have previously been little analyzed in the literature, are reviewed.

Suggested Citation

  • Uwe Jirjahn & Stephen C. Smith, 2017. "Nonunion Employee Representation: Theory and the German Experience with Mandated Works Councils," Research Papers in Economics 2017-08, University of Trier, Department of Economics.
  • Handle: RePEc:trr:wpaper:201708
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    Cited by:

    1. Jirjahn, Uwe & Mohrenweiser, Jens, 2019. "Works Councils and Organizational Gender Policies in Germany," GLO Discussion Paper Series 347, Global Labor Organization (GLO).
    2. John T. Addison & Paulino Teixeira & Lutz Bellmann, 2020. "Management Practices and Establishment Performance under Non-Union Workplace Representation," CESifo Working Paper Series 8599, CESifo.
    3. Rapp, Marc Steffen & Wolff, Michael & Hennig, Jan C. & Udoieva, Iuliia, 2019. "Mitbestimmung im Aufsichtsrat und ihre Wirkung auf die Unterenhmensführung: Eine empirische Analyse vor dem Hintergrund der Finanz- und Wirtschaftskrise," Study / edition der Hans-Böckler-Stiftung, Hans-Böckler-Stiftung, Düsseldorf, volume 127, number 424, June.
    4. Hagen Lesch, 2020. "100 Jahre Betriebsrätegesetz und aktuelle Partizipation von Beschäftigten in Deutschland [100 Years of the Works Council Act and Current Participation of Employees in Germany]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(7), pages 550-555, July.
    5. Jirjahn, Uwe, 2021. "Membership in Employers' Associations and Collective Bargaining Coverage in Germany," GLO Discussion Paper Series 954, Global Labor Organization (GLO).
    6. Tina Hinz & Jens Mohrenweiser, 2019. "Competition, Institutions and Company-sponsored Training," Economics of Education Working Paper Series 0162, University of Zurich, Department of Business Administration (IBW).
    7. Mohrenweiser, Jens, 2021. "Reconciling the opposing economic effects of works councils across databases," GLO Discussion Paper Series 895, Global Labor Organization (GLO).
    8. Hans-Dieter Gerner & Holger Reinemann & Andreas Dutzi & Daniel Ludwig, 2019. "Voraussetzungen und Effekte betrieblicher Interessenvertretung in eigentümergeführten Unternehmen," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 67(2), pages 113-144.
    9. Uwe Jirjahn & Jens Mohrenweiser, 2021. "Works councils and organizational gender policies in Germany," British Journal of Industrial Relations, London School of Economics, vol. 59(4), pages 1020-1048, December.
    10. Addison, John T. & Teixeira, Paulino & Grunau, Philipp & Bellmann, Lutz, 2019. "Dissonant Works Councils and Establishment Survivability," IZA Discussion Papers 12438, Institute of Labor Economics (IZA).
    11. Laszlo Goerke, 2020. "Unions and Workers' Well-being," IAAEU Discussion Papers 202008, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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    More about this item

    Keywords

    Nonunion representation; works councils; organizational failures; market failures; society;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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