Works councils in Germany: their effects on establishment performance

Addison JT, Schnabel C, Wagner J (2001)

Publication Language: English

Publication Type: Journal article

Publication year: 2001

Journal

Oxford Economic Papers Oxford University Press (OUP): Policy F - Oxford Open Option D

Publisher: Oxford University Press (OUP): Policy F - Oxford Open Option D

Book Volume: 53

Pages Range: 659-694

Journal Issue: 4

DOI: 10.1093/oep/53.4.659

Abstract

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. Copyright 2001 by Oxford University Press.

Authors with CRIS profile

Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Involved external institutions

University of South Carolina US United States (USA) (US) Leuphana Universität Lüneburg DE Germany (DE)

How to cite

APA:

Addison, J.T., Schnabel, C., & Wagner, J. (2001). Works councils in Germany: their effects on establishment performance. Oxford Economic Papers, 53(4), 659-694. https://dx.doi.org/10.1093/oep/53.4.659

MLA:

Addison, John T., Claus Schnabel, and Joachim Wagner. "Works councils in Germany: their effects on establishment performance." Oxford Economic Papers 53.4 (2001): 659-694.

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