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)
University of Erlangen-Nuremberg; Institute for the Study of Labor (IZA)
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)
British Journal of Industrial Relations, Vol. 42, No. 2, pp. 255-281, June 2004
In her recent survey, Carola Frege concludes that economic analysis of the works council has reached a 'dead end'. The present paper offers a very different assessment. The evolving economic literature is shown to follow three distinct phases, the last of which contains some of the most positive evaluations to date of works council impact on establishment performance. Although these estimates are exaggerated, and the effects of works councils are likely to be small on average, the new literature redirects our research focus towards factors producing swings around this average, including differences in works council types and their workplace environments.
Number of Pages in PDF File: 28Accepted Paper Series
Date posted: June 20, 2004
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