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.

Gewerkschaften wird häufig ein baldiges Verschwinden prophezeit. Sie wären das Opfer von Strukturwandel, Globalisierung, dezentralisierten Tarifverhandlungen und veränderten Einstellungen der Arbeitnehmer. Doch sind eher der demografische Wandel, die schwierige Rekrutierung junger...

Low-wage employment has become an important feature of the labor market and a controversial topic for debate in many countries. How to interpret the prominence of lowpaid jobs and whether they are beneficial to workers or society is currently an open question. The answer depends on whether...