Labor in the boardroom

Simon Jäger, Benjamin Schoefer and Jörg Heining
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Jörg Heining: Institute for Employment Research (IAB), Nuremberg, Germany

No 202008, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We estimate the effects of a mandate allocating a third of corporate board seats to workers (shared governance). We study a reform in Germany that abruptly abolished this mandate for new firm cohorts but locked it in for incumbents. Rejecting the canonical hold-up prediction - that increasing labor's power reduces owners' investment incentives - we find positive effects on capital formation. Shared governance does not measurably raise wages or rent sharing, nor does it lower profitability or debt capacity. It lowers outsourcing. The evidence is consistent with richer models of industrial relations whereby shared governance institutionalizes communication and repeated interactions between labor and capital." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Aufsichtsrat; Auswirkungen; Einkommenseffekte; Gesetzgebung; Gewinn; Investitionsanreiz; Kapitalbildung; Kapitalintensität; Aktiengesellschaft; outsourcing; Reformpolitik; Arbeitnehmerbeteiligung; Arbeitnehmervertretung; Arbeitsbeziehungen; Orbis-ADIAB; 2006-2014 (search for similar items in EconPapers)
Pages: 114 pages
Date: 2020-03-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in/as: The Quarterly Journal of Economics (2020), online first, doi:10.1093/qje/qjaa038

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https://doku.iab.de/discussionpapers/2020/dp0820.pdf

Related works:
Journal Article: Labor in the Boardroom* (2021)
Working Paper: Labor in the Boardroom (2019)
Working Paper: Labor in the Boardroom (2019)
Working Paper: Labor in the Boardroom (2019)
Working Paper: Labor in the Boardroom (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202008

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