 Works council ‘disaffection’ and establishment survivabilityJohn Addison, Paulino Teixeira, Philipp Grunau and Lutz Bellmann Scottish Journal of Political Economy, 2023, vol. 70, issue 1, 38-67 Abstract: This article investigates the association between a measure of works council heterogeneity and plant closings in Germany, 2006–2015. Two datasets are used to identify failed establishments, while institutional heterogeneity is captured by management perceptions of the role of the works council in managerial decision making and also by allowing for works council learning. The potential moderating role of sectoral collective bargaining is also examined. We report that works councils per se are not associated with plant closure. Rather, it is establishments with disaffected councils that display higher rates of closure. The latter result does not obtain where such establishments are covered by sectoral agreements; an outcome that is consistent with the literature on the mitigation of rent‐seeking behaviour, and one that also receives support from our finding that plants with dissonant councils are more likely than their consensual counterparts to transition into sectoral bargaining coverage. On the other hand, there is only limited evidence of works council learning. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:70:y:2023:i:1:p:38-67 Ordering information: This journal article can be ordered from Access Statistics for this article Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC. |
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