TY - UNPB

T1 - German works councils and productivity

T2 - first evidence from a nonparametric test

AU - Wagner, Joachim

N1 - Literaturverz. S. 7 - 8

PY - 2005

Y1 - 2005

N2 - This article presents the first nonparametric test whether German works councils go hand-in-hand with higher labour productivity or not. It distinguishes between establishments that are covered by collective bargaining or not. Results from a Kolmogorov–Smirnov test for first-order stochastic dominance tend to indicate that pro-productive effects are found in firms with collective bargaining only. However, the significance level of the test statistic is higher than a usually applied critical level. This somewhat weak evidence casts doubts on the validity of results from recent parametric approaches using a regression framework that point to high positive effects of works councils on productivity.

AB - This article presents the first nonparametric test whether German works councils go hand-in-hand with higher labour productivity or not. It distinguishes between establishments that are covered by collective bargaining or not. Results from a Kolmogorov–Smirnov test for first-order stochastic dominance tend to indicate that pro-productive effects are found in firms with collective bargaining only. However, the significance level of the test statistic is higher than a usually applied critical level. This somewhat weak evidence casts doubts on the validity of results from recent parametric approaches using a regression framework that point to high positive effects of works councils on productivity.

KW - Economics

KW - Works councils

KW - productivity

KW - stochastic dominance

UR - https://www.gbv.de/dms/lueneburg/LG/OPUS/2005/333/pdf/wp_14_Upload.pdf

M3 - Working papers

T3 - Working paper series in economics

BT - German works councils and productivity

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -