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German works councils and productivity: first evidence from a nonparametric test

Joachim Wagner ()

Applied Economics Letters, 2008, vol. 15, issue 9, 727-730

Abstract: This article presents the first nonparametric test whether German works councils go hand-in-hand with higher labour productivity or not. It distinguishes between establishments that are covered by collective bargaining or not. Results from a Kolmogorov-Smirnov test for first-order stochastic dominance tend to indicate that pro-productive effects are found in firms with collective bargaining only. However, the significance level of the test statistic is higher than a usually applied critical level. This somewhat weak evidence casts doubts on the validity of results from recent parametric approaches using a regression framework that point to high positive effects of works councils on productivity.

Date: 2008
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Related works:
Working Paper: German Works Councils and Productivity: First Evidence from a Nonparametric Test (2005) Downloads
Working Paper: German Works Councils and Productivity: First Evidence from a Nonparametric Test (2005) Downloads
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