We estimate dynamic effects of works councils on labor productivity using newly available information from West German establishment panel data. Conditioning on plant fixed effects and control variables, we find negative productivity effects during the first five years after council...

Using German establishment data, this study provides the first econometric analysis on the interaction of establishment-level codetermination and foreign owners. Works councils are associated with higher productivity in domestic-owned establishments while they are associated with lower...

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...

Arbeitnehmer haben in Deutschland das Recht zur Wahl von Betriebsräten. Betriebsräte haben gesetzliche Informations-, Konsultations- und Mitbestimmungsrechte. Die Effekte von Betriebsräten auf Produktivität und Gewinne von mittelgroßen Betrieben des verarbeitenden Gewerbes werden mit Daten...

As they are employee associations, it is typically presumed that works councils redistribute economic rents from firm owners to workers. And indeed, empirical literature suggests that works councils reduce profits although, at the same time, they increase productivity. Studies on the...