The Productivity Effect of Non-Union Representation

Steffen Mueller

No 74, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: Declining union density in many industrialized countries directs attention to alter- native ways of labor relations and worker representation as, e.g., works councils. German works councils belong to the most powerful worker representations in de- veloped countries but little is known of their causal effect on productivity. A large linked employer-employee panel is used to examine this issue. Comparing firms with and without a works council I find that firms with a works council are on average 6.5 percent more productive. I present evidence that this estimate is the lower bound to the causal productivity effect of works councils.

Keywords: worker participation; works council; productivity (search for similar items in EconPapers)
JEL-codes: D24 J53 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2009-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:074_mueller

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