Cite JOURNAL ARTICLE
Payment Schemes, Returns and Works Councils
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 3 : pp. 383–395
The interdependences of payment schemes, retums and the existence of a works council are analysed by using data collected on German firms in the sector of mechanical engineering. There is no connection between payment schemes and retums, whereas a works council has a negative effect on a firm's retums as has been found in former studies. Although a strong correlation between the use of different payment schemes and works councils exists, this is only due to firm size. Finally, a first model of the determinants of newly-founded works councils is estimated, validating the former results and suggesting a new direction for further research.