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The effect of employee workplace representation on firm performance: A cross-country comparison within Europe

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  • A. van den Berg
  • Y.K. Grift
  • A. van Witteloostuijn
  • C. Boone
  • O. van der Brempt

Abstract

In this paper, we contribute to the extant Industrial Relations literature, which is almost completely confined to estimating the effects of worker participation within a single country, by conducting a comparative multi-country study using unique data from the European Company Survey 2009. We compare representation regimes within the European Union. We categorize the EU Member States into five clusters with similar participation characteristics: the Germanic, French, Anglo-Saxon, Scandinavian and transition cluster. Across these clusters, we first estimate the effects of the presence of what we refer to as an information and consultation body on firm performance, measured by economic performance of the establishment as assessed by managers-respondents. Second, we estimate the effects of managerial attitudes on performance, as we assume – and find – that only taking into account the mere presence of a worker representation is insufficient, as mutual understandings between management and employee representatives affect the functioning of the employee representation body, and hence firm performance.

Suggested Citation

  • A. van den Berg & Y.K. Grift & A. van Witteloostuijn & C. Boone & O. van der Brempt, 2013. "The effect of employee workplace representation on firm performance: A cross-country comparison within Europe," Working Papers 13-05, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:1305
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    References listed on IDEAS

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    Cited by:

    1. Addison John T. & Teixeira Paulino, 2019. "Workplace Employee Representation and Industrial Relations Performance: New Evidence from the 2013 European Company Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 111-154, January.
    2. John T Addison & Paulino Teixeira, 2024. "Strike incidence and outcomes: New evidence from the 2019 ECS," European Journal of Industrial Relations, , vol. 30(2), pages 123-149, June.
    3. Mohrenweiser, Jens, 2021. "Reconciling the opposing economic effects of works councils across databases [Die Vereinbarkeit gegensätzlicher Befunde zu ökonomischen Effekten von Betriebsräten in verschiedenen Datensätzen]," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 28(4), pages 384-406.
    4. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    5. Addison, John T. & Teixeira, Paulino, 2019. "Strikes, employee workplace representation, unionism, and industrial relations quality in European establishments," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 109-133.
    6. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    7. Addison, John T. & Teixeira, Paulino, 2018. "What Do Workers Want? The Shortfall in Employee Participation at the European Workplace," IZA Discussion Papers 11506, Institute of Labor Economics (IZA).
    8. John T. Addison & Paulino Teixeira, 2018. "The Shortfall in Formal Employee Participation at the European Workplace," CESifo Working Paper Series 7399, CESifo.
    9. Olaf Hübler, 2015. "Do works councils raise or lower firm productivity?," IZA World of Labor, Institute of Labor Economics (IZA), pages 137-137, March.
    10. John T. Addison & Paulino Teixeira, 2022. "The Incidence and Outcomes of Industrial Action: New Evidence from the 2019 European Company Survey," CESifo Working Paper Series 9685, CESifo.
    11. Rafael Grande & Alberto Vallejo-Peña & Cesira Urzi Brancati, 2021. "The impact of IoT and 3D printing on job quality and work organisation: a snapshot from Spain," JRC Working Papers on Labour, Education and Technology 2021-10, Joint Research Centre.
    12. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).
    13. Addison, John T. & Teixeira, Paulino, 2017. "Strikes, Employee Workplace Representation, Unionism, and Trust: Evidence from Cross-Country Data," IZA Discussion Papers 10575, Institute of Labor Economics (IZA).

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    Keywords

    employee representation; works councils; firm performance; international comparison; Europe; ECS2009;
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