Theory suggests that firms confront a hold-up problem in dealing with workplace unionism: unions will appropriate a portion of the quasi rents stemming from long-lived capital. As a result, firms may be expected to limit their exposure to rent seeking by reducing investments, among other things....

Theory suggests that firms confront a hold-up problem in dealing with workplace unionism: unions will appropriate a portion of the quasi rents stemming from long-lived capital. As a result, firms may be expected to limit their exposure to rent seeking by reducing investments, among other things....

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...

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...

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...

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...

Mit Daten des Hannoveraner Firmenpanels überprüfen wir die Position der Mitbestimmungskommission, die Ausweitung der mitbestimmungsfreien Zone in Deutschland sei nicht hinzunehmen. Es zeigt sich, dass die Auswirkungen von Betriebsräten auf verschiedene betriebliche Indikatoren keine...

Bis Herbst dieses Jahres soll ein Referentenentwurf für eine Novelle des Betriebsverfassungsgesetzes vorgelegt werden. Unter anderem soll damit die Verbreitung von Betriebsräten in Klein- und Mittelbetrieben gesteigert werden. Wie ist die Tatsache, dass Betriebsräte heute nur in wenigen...

Summary This paper presents new evidence of works council impact on two dimensions of firm performance, namely, relative profitability as assessed by top management, and innovative activity as measured by new product development. The extant German literature is reviewed en passant, and some care...

Summary Using OLS and quantile regression methods and rich cross-section data sets for western and eastern Germany, this paper demonstrates that the impact of works council presence on labor productivity varies between manufacturing and services, between plants that are or are not covered by...