Using a large panel data set we investigate whether works councils act as a sand or grease in the operation of German firms. Stochastic production frontier analysis indicates that establishments with and without a works council do not exhibit significant differences in efficiency

In a sharp break with past German research, some recent estimates have suggested that plants with work councils have 25 to 30 per cent higher productivity than their works-council-free counterparts. Such findings can only serve to buttress the strong theoretical and policy interest in the German...

18 Studies, die sich auf Daten aus 20 hochentwickelten, sich entwickelnden und weniger entwickelten Ländern stützen, zeigen, dass die Durchschnittslöhne in exportierenden Firmen höher liegen als in nichtexportierenden Firmen aus gleichen Branche und Region. Die Existenz dieser Lohnzuschläge...