TY - JOUR

T1 - Works councils in Germany

T2 - Their effects on establisment perfomance

AU - Addison, John T.

AU - Schnabel, Claus

AU - Wagner, Joachim

PY - 2001/10/1

Y1 - 2001/10/1

N2 - Works councils are the most important pillar of workplace industrial relations in Germany but little is known of their economic effects. The paper uses a modern, large-scale dataset to examine this issue. Consonant with recent applied theoretical conjectures, it is found that works councils are associated with reduced labour fluctuation, higher productivity (in larger establishments only), and no reduction in innovative activity. Yet they are also associated with lower profitability and higher wages. This concatenation of results, although not inconsistent with efficiency, underscores the need for closer investigation of the institution given actual and prospective EU works council mandates.

AB - Works councils are the most important pillar of workplace industrial relations in Germany but little is known of their economic effects. The paper uses a modern, large-scale dataset to examine this issue. Consonant with recent applied theoretical conjectures, it is found that works councils are associated with reduced labour fluctuation, higher productivity (in larger establishments only), and no reduction in innovative activity. Yet they are also associated with lower profitability and higher wages. This concatenation of results, although not inconsistent with efficiency, underscores the need for closer investigation of the institution given actual and prospective EU works council mandates.

KW - Economics

KW - Deutschland

KW - Betriebsrat

KW - Unternehmensentwicklung

UR - http://www.scopus.com/inward/record.url?scp=0034790830&partnerID=8YFLogxK

U2 - 10.1093/oep/53.4.659

DO - 10.1093/oep/53.4.659

M3 - Journal articles

VL - 53

SP - 659

EP - 694

JO - Oxford Economic Papers

JF - Oxford Economic Papers

SN - 0030-7653

IS - 4

ER -