TY - UNPB

T1 - German works councils in the production process

AU - Schank, Thorsten

AU - Schnabel, Claus

AU - Wagner, Joachim

AU - Addison, John T.

PY - 2003

Y1 - 2003

N2 - We estimate the effects of works councils on productivity, 1997-2000, using the IAB Establishment Panel, a nationally representative German data set. We recoup the works council effect by estimating translog production functions, stochastic frontier production functions, and a model in first differences. Once we focus on a core sample of establishments with 21 to 100 employees in which the powers of the works council are a datum, it emerges that the positive productivity differential found in recent studies is a chimera. By the same token, neither is the works council effect negative. This result is important in its own right given the sharply opposing findings of past empirical research and the partisan positions these have helped sustain.

AB - We estimate the effects of works councils on productivity, 1997-2000, using the IAB Establishment Panel, a nationally representative German data set. We recoup the works council effect by estimating translog production functions, stochastic frontier production functions, and a model in first differences. Once we focus on a core sample of establishments with 21 to 100 employees in which the powers of the works council are a datum, it emerges that the positive productivity differential found in recent studies is a chimera. By the same token, neither is the works council effect negative. This result is important in its own right given the sharply opposing findings of past empirical research and the partisan positions these have helped sustain.

KW - Economics

KW - Betriebsrat

M3 - Working papers

T3 - Arbeitsbericht

BT - German works councils in the production process

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -