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http://ssrn.com/abstract=446402
 
 

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The Course of Research into the Economic Consequences of German Works Councils


John T. Addison


University of South Carolina - Moore School of Business - Department of Economics; Institute for the Study of Labor (IZA)

Claus Schnabel


University of Erlangen-Nuremberg; Institute for the Study of Labor (IZA)

Joachim Wagner


University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; Institute for the Study of Labor (IZA)

September 2003

IZA Discussion Paper No. 878

Abstract:     
In a survey published in the British Journal of Industrial Relations, Frege (2002) evaluates research on the German works council from the perspective of several disciplines, including economics. Ultimately, she concludes that economic analysis of the works council has reached a "dead end". The present treatment offers a very different conclusion based on a more encompassing review of the evidence. It will identify three distinct phases in the economic analysis of codetermination at the workplace. This framework is key to understanding the progress that has been made in analysing the effect of works councils on firm performance, while highlighting some important measurement issues and diversity of finding. Given the recent vintage of much of the German research, it is inevitable that Frege considers studies from just the first two phases. Rather interestingly, it is the neglected third phase of research that contains some of the most favourable evaluations to date of Works council impact.

Number of Pages in PDF File: 35

Keywords: works councils, codetermination, quits, productivity, investment, profitability, employee involvement/high performance workplace practices

JEL Classification: J50

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Date posted: October 16, 2003  

Suggested Citation

Addison, John T. and Schnabel, Claus and Wagner, Joachim, The Course of Research into the Economic Consequences of German Works Councils (September 2003). IZA Discussion Paper No. 878. Available at SSRN: http://ssrn.com/abstract=446402

Contact Information

John T. Addison (Contact Author)
University of South Carolina - Moore School of Business - Department of Economics ( email )
The Francis M. Hipp Building
1705 College Street
Columbia, SC 29208
United States
803-777-7400 (Phone)
803-777-6876 (Fax)
HOME PAGE: http://mooreschool.sc.edu/moore/economics/profiles/addison.htm
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Claus Schnabel
University of Erlangen-Nuremberg ( email )
Volkswirtschaftliches Institut
Lange Gasse 20
D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)
Institute for the Study of Labor (IZA)
Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany
Joachim Wagner
University of Lueneburg - Institute of Economics ( email )
PO Box 2440
D-21314 Luneburg
Germany
+49 4131 677 2330 (Phone)
+49 4131 677 2026 (Fax)
HOME PAGE: http://www.uni-lueneburg.de/wifo
Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )
Kahlaische Strasse 10
D-07745 Jena, 07745
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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