Mandated Works Councils and Firm Performance: Labor Productivity and Personnel Turnover in German Establishments
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Mandated Works Councils and Firm Performance: Labor Productivity and Personnel Turnover in German Establishments
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 3 : pp. 423–454
27 Citations (CrossRef)
Additional Information
Article Details
Frick, Bernd
Möller, Iris
Cited By
-
The adoption of digital technologies: Investment, skills, work organisation
Cirillo, Valeria | Fanti, Lucrezia | Mina, Andrea | Ricci, AndreaStructural Change and Economic Dynamics, Vol. 66 (2023), Iss. P.89
https://doi.org/10.1016/j.strueco.2023.04.011 [Citations: 27] -
Part-time work and the hiring of older workers
Heywood, John S. | Jirjahn, Uwe | Tsertsvadze, GeorgiApplied Economics, Vol. 43 (2011), Iss. 28 P.4239
https://doi.org/10.1080/00036846.2010.491447 [Citations: 11] -
The role of works councils in severance payments for dismissed employees
Grund, Christian | Martin, JohannesThe International Journal of Human Resource Management, Vol. 32 (2021), Iss. 4 P.871
https://doi.org/10.1080/09585192.2018.1504108 [Citations: 4] -
Rent Seeking, Employment Security, And Works Councils: Theory And Evidence For Germany
Beckmann, Michael | Föhr, Silvia | Kräkel, MatthiasSchmalenbach Business Review, Vol. 62 (2010), Iss. 1 P.2
https://doi.org/10.1007/BF03396795 [Citations: 12] -
Voluntary Quits: Do Works Councils Matter? An Analysis of the Reform of the German Works Constitution Act 2001
Adam, Julian B.
Jahrbücher für Nationalökonomie und Statistik, Vol. 239 (2019), Iss. 1 P.67
https://doi.org/10.1515/jbnst-2017-0164 [Citations: 4] -
The wage impact of being a works council representative in Germany: A case of strategic discrimination?
Brébion, Clément
Industrial Relations: A Journal of Economy and Society, Vol. 61 (2022), Iss. 4 P.418
https://doi.org/10.1111/irel.12307 [Citations: 2] -
The Dynamic Effects of Works Councils on Labour Productivity: First Evidence from Panel Data
Mueller, Steffen | Stegmaier, JensBritish Journal of Industrial Relations, Vol. 55 (2017), Iss. 2 P.372
https://doi.org/10.1111/bjir.12200 [Citations: 30] -
Wage determination in the shadow of the law: The case of works councilors in Germany
Goerke, Laszlo | Pannenberg, MarkusEconomic and Industrial Democracy, Vol. 45 (2024), Iss. 1 P.83
https://doi.org/10.1177/0143831X221139331 [Citations: 1] -
Works Councils and Establishment Productivity
Mueller, Steffen
ILR Review, Vol. 65 (2012), Iss. 4 P.880
https://doi.org/10.1177/001979391206500405 [Citations: 43] -
Works councils, quits and dismissals in Germany
Grund, Christian | Martin, Johannes | Schmitt, AndreasGerman Journal of Human Resource Management: Zeitschrift für Personalforschung, Vol. 30 (2016), Iss. 1 P.53
https://doi.org/10.1177/2397002215625894 [Citations: 12] -
Corporate Social Responsibility and Corporate Governance
Voluntary Co-determination Produces Sustainable Competitive Advantage
Osterloh, Margit | Frey, Bruno S. | Zeitoun, Hossam2011
https://doi.org/10.1057/9780230302112_12 [Citations: 8] -
Paid vacation use: The role of works councils
Goerke, Laszlo | Jeworrek, SabrinaEconomic and Industrial Democracy, Vol. 42 (2021), Iss. 3 P.473
https://doi.org/10.1177/0143831X18777611 [Citations: 1] -
The German model in danger
Grahl, John | Teague, PaulIndustrial Relations Journal, Vol. 35 (2004), Iss. 6 P.557
https://doi.org/10.1111/j.1468-2338.2004.00333.x [Citations: 18] -
The Course of Research into the Economic Consequences of German Works Councils
Addison, John T. | Schnabel, Claus | Wagner, JoachimBritish Journal of Industrial Relations, Vol. 42 (2004), Iss. 2 P.255
https://doi.org/10.1111/j.1467-8543.2004.00314.x [Citations: 86] -
Management practices and productivity: Does employee representation play a moderating role?
Jirjahn, Uwe | Laible, Marie‐Christine | Mohrenweiser, JensHuman Resource Management Journal, Vol. 34 (2024), Iss. 1 P.236
https://doi.org/10.1111/1748-8583.12526 [Citations: 3] -
Wage Determination in the Shadow of the Law: The Case of Works Councilors in Germany
Goerke, Laszlo | Pannenberg, MarkusSSRN Electronic Journal, Vol. (2021), Iss.
https://doi.org/10.2139/ssrn.3794089 [Citations: 0] -
Advances in the Economic Analysis of Participatory and Labor-Managed Firms
Seniority Wages and Employee Participation
Zwick, Thomas
2012
https://doi.org/10.1108/S0885-3339(2012)0000013016 [Citations: 3] -
Seniority and Job Stability: A Quantile Regression Approach Using Matched Employer-Employee Data
Boockmann, Bernhard | Steffes, SusanneSSRN Electronic Journal, Vol. (2007), Iss.
https://doi.org/10.2139/ssrn.971369 [Citations: 2] -
Hiring older workers and employing older workers: German evidence
Heywood, John S. | Jirjahn, Uwe | Tsertsvardze, GeorgiJournal of Population Economics, Vol. 23 (2010), Iss. 2 P.595
https://doi.org/10.1007/s00148-008-0214-7 [Citations: 63] -
Ökonomische Wirkungen der Mitbestimmung in Deutschland: Ein Update
Jirjahn, Uwe
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 131 (2011), Iss. 1 P.3
https://doi.org/10.3790/schm.131.1.3 [Citations: 30] -
Die Auswirkungen von Gewinn- und Entscheidungsbeteiligung auf den Unternehmenserfolg
Kraft, Kornelius
Zeitschrift für ArbeitsmarktForschung, Vol. 44 (2011), Iss. 1-2 P.73
https://doi.org/10.1007/s12651-011-0066-6 [Citations: 1] -
Betriebsräte und betriebliche Produktivität
Müller, Steffen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 131 (2011), Iss. 1 P.73
https://doi.org/10.3790/schm.131.1.73 [Citations: 4] -
Dynamic Efficiency of Supervisory Board Codetermination in Germany
Renaud, Simon
LABOUR, Vol. 21 (2007), Iss. 4-5 P.689
https://doi.org/10.1111/j.1467-9914.2007.00387.x [Citations: 33] -
Verbreitung und ökonomische Effekte von Betriebsräten und alternativen Mitbestimmungsformen in der Industrie und deren Verbundbranchen
Stettes, Oliver
Sozialer Fortschritt, Vol. 59 (2010), Iss. 8 P.199
https://doi.org/10.3790/sfo.59.8.199 [Citations: 10] -
Internal rent seeking, works councils, and optimal establishment size
Beckmann, Michael | Kräkel, MatthiasEuropean Economic Review, Vol. 56 (2012), Iss. 4 P.711
https://doi.org/10.1016/j.euroecorev.2012.01.005 [Citations: 6] -
Toward a behavioural theory of cooperation between managers and employee representatives in works councils
Van der Brempt, Olivier | Boone, Christophe | van Witteloostuijn, Arjen | van den Berg, AnnetteEconomic and Industrial Democracy, Vol. 38 (2017), Iss. 2 P.314
https://doi.org/10.1177/0143831X15578721 [Citations: 8] -
Works Councils and Labour Productivity: Looking beyond the Mean
Mueller, Steffen
British Journal of Industrial Relations, Vol. 53 (2015), Iss. 2 P.308
https://doi.org/10.1111/bjir.12037 [Citations: 26]
Abstract
Traditionally, works councils have been viewed by most economists as welfare reducing cartels that inhibit firms from allocating their resources efficiently. This view has been challenged recently: To the extent that a works council can convince a firm's employees to accept decisions and measures that seem to violate their interests, mandated codetermination is likely to overcome the problems inherent in a "prisoner's dilemma" situation, where credible commitments are impossible to be made without the support of an exogenously implemented institution.
This latter view is supported by the evidence presented in the empirical part of the paper: First, a review of the literature on the influence of works councils on investments in "intangible assets" suggests that concentrating on investments in physical capital, on productivity, profitability, investments, and some other easy to measure indicators of firm performance may lead to a considerable underestimation of the positive effects of mandated works councils. Second, the presence of a works council has a positive and statistically significant influence on labor productivity as well as a significantly negative influence on personnel turnover in German frrms. The respective coefficients indicate that these effects are in some cases quite large and that they differ considerably between industry and service sectors as well as between East and West German firms.