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The Dynamic Effects of Works Councils on Labor Productivity: First Evidence from Panel Data

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  • Müller, Steffen
  • Stegmaier, Jens

Abstract

We estimate dynamic effects of works councils on labor productivity using newly available information from West German establishment panel data. Conditioning on plant fixed effects and control variables, we find negative productivity effects during the first five years after council introduction, but a steady and substantial increase in the councils' productivity effect thereafter. Given the frequently reported positive correlation between council existence and plant productivity, this finding supports causal interpretations.
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  • Müller, Steffen & Stegmaier, Jens, 2013. "The Dynamic Effects of Works Councils on Labor Productivity: First Evidence from Panel Data," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79846, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc13:79846
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    as
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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