German works councils in the production process

John Addison, Thorsten Schank, Claus Schnabel and Joachim Wagner ()

No 21, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: We estimate the effects of works councils on productivity, 1997-2000, using the IAB Establishment Panel, a nationally representative German data set. We recoup the works council effect by estimating translog production functions, stochastic frontier production functions, and a model in first differences. Once we focus on a core sample of establishments with 21 to 100 employees in which the powers of the works council are a datum, it emerges that the positive productivity differential found in recent studies is a chimera. By the same token, neither is the works council effect negative. This result is important in its own right given the sharply opposing findings of past empirical research and the partisan positions these have helped sustain.

Keywords: Works council; production functions; panel data; Germany (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (18)

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Working Paper: German Works Councils in the Production Process (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:21

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