Using a large panel data set we investigate whether works councils act as 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.

Although works councils are a core element of the German system of industrial relations, there is little reliable information on their incidence and coverage. This paper uses data from the nationally representative IAB establishment panel to fill this gap. We examine the frequency of works...

Eine empirische Untersuchung mit einem großen Betriebsdatensatz macht deutlich, dass direkte Arbeitnehmerpartizipation in Form von Gruppenarbeit und regelmäßigen Mitarbeitergesprächen in mehr Industriebetrieben zu finden ist als repräsentative Partizipation durch Betriebsräte. Die...

In a recent survey, Frege (2002) concludes that economic analysis of the works council has reached a `dead end´. The present treatment offers a different conclusion based on a more encompassing review of the evidence. It will identify three distinct phases in the economic analysis of...

Recent empirical research generally finds evidence of positive economic effects of works councils, for example with regard to productivity and - with some limitations - to profits. This makes it necessary to explain why employers’ associations have reservations against works councils. On the...

Since 1920, the thrust of German law on workplace codetermination has changed on a number of occasions. We describe the latest swing of the legislative pendium - favoring works council formation and competence - and evaluate the case for it. We provide new information on the extent of works...

Although works councils are a core element of the German system of industrial relations, there is little reliable information on their incidence and coverage. This paper uses data from the nationally representative IAB establishment panel to fill this gap. We examine the frequency of works...

Das am 27. Juli 2001 in Kraft getretene reformierte Betriebsverfassungsgesetz war vor seiner Verabschiedung Gegenstand teils heftiger Diskussionen in Wirtschaft, Politik und Wissenschaft. Die Positionen bezüglich der zu erwartenden Konsequenzen für Kosten und Erträge der Betriebe und...