Do Works Councils Inhibit Investment?
John Addison,
Thorsten Schank,
Claus Schnabel and
Joachim Wagner ()
ILR Review, 2007, vol. 60, issue 2, 187-203
Abstract:
Theory suggests that firms confront a hold-up problem in dealing with workplace unionism: unions will appropriate a portion of the quasi-rents stemming from long-lived capital. As a result, firms may be expected to limit their exposure to rent-seeking by reducing investments. The U.S. evidence points clearly in this direction. The authors of this paper investigate whether the same is true for German works councils, the analogue of workplace unionism in that nation. Using establishment panel data for the years 1998–2003, they find no evidence that a works council's formation adversely affected investment or that its dissolution favorably affected investment.
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)
Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/001979390706000202 (text/html)
Related works:
Working Paper: Do Works Councils Inhibit Investment? (2005) 
Working Paper: Do Works Councils Inhibit Investment? (2005) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:60:y:2007:i:2:p:187-203
DOI: 10.1177/001979390706000202
Access Statistics for this article
More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().