Works councils, labor productivity and plant heterogeneity: first evidence from quantile regressions
Research output: Working paper › Working papers
Authors
Using quantile regressions and a rich cross section data set for German manufacturing plants, this paper reports that the impact of works councils on labor productivity varies along
the conditional distribution of value added per employee. It emerges that the positive and statistically significant effect of works council presence estimated by ordinary least squares
now vanishes for large parts of this distribution. According to our results, such an effect can only be detected in plants at the top end of the conditional productivity distribution – plants that can be considered ‘over achievers.’ We would speculate that this might be because only highly competent managers can cooperate with a works council in a way that much enhances
productivity.
the conditional distribution of value added per employee. It emerges that the positive and statistically significant effect of works council presence estimated by ordinary least squares
now vanishes for large parts of this distribution. According to our results, such an effect can only be detected in plants at the top end of the conditional productivity distribution – plants that can be considered ‘over achievers.’ We would speculate that this might be because only highly competent managers can cooperate with a works council in a way that much enhances
productivity.
| Original language | English |
|---|---|
| Place of Publication | Lüneburg |
| Publisher | Institut für Volkswirtschaftslehre der Universität Lüneburg |
| Number of pages | 25 |
| Publication status | Published - 2006 |
- Economics - labor productivity, works councils, quantile regressions, heterogeneous firms