German works councils and productivity: first evidence from a nonparametric test
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Authors
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.
Original language | English |
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Journal | Applied Economics Letters |
Volume | 15 |
Issue number | 9 |
Pages (from-to) | 727-730 |
Number of pages | 4 |
ISSN | 1350-4851 |
DOIs | |
Publication status | Published - 07.2008 |
- Economics