The Effect of Works Councils on Employment Change

John Addison and Paulino Teixeira

No 2005-06, GEMF Working Papers from GEMF, Faculty of Economics, University of Coimbra

Abstract: Despite recent changes in the relationship between unionism and various indicators of firm performance, there is one seeming constant in the Anglophone countries: unions at the workplace are associated with reduced employment growth of around -2.5% a year. Using German data, we examine the impact of the works council – that country’s form of workplace representation – on employment change, 1993-2001. The German institution appears to have much the same negative effect on employment growth. That said, survival bias seems to play a small role, and works councils do not seem to further slow the tortuous pace of employment adjustment in Germany.

Pages: 43 pages
Date: 2005
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Citations: View citations in EconPapers (18)

Published in Industrial Relations, 45(1): 1- 24, 2006.

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Persistent link: https://EconPapers.repec.org/RePEc:gmf:wpaper:2005-06

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