Nonunion Employee Representation: Theory and the German Experience with Mandated Works Councils

62 Pages Posted: 23 Oct 2017

See all articles by Uwe Jirjahn

Uwe Jirjahn

University of Trier - Faculty of Economics

Stephen C. Smith

George Washington University - Department of Economics

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Abstract

Theories of how nonunion employee representation impacts firm performance, affects market equilibria, and generates externalities on labor and society are synthesized. Mandated works councils in Germany provide a particularly strong form of nonunion employee representation. A systematic review of research on the German experience with mandated works councils finds generally positive effects, though these effects depend on a series of moderating factors and some impacts remain ambiguous. Finally, key questions for empirical research on nonunion employee representation, which have previously been little analyzed in the literature, are reviewed.

Keywords: nonunion representation, works councils, organizational failures, market failures, society

JEL Classification: J50, M50

Suggested Citation

Jirjahn, Uwe and Smith, Stephen C., Nonunion Employee Representation: Theory and the German Experience with Mandated Works Councils. IZA Discussion Paper No. 11066, Available at SSRN: https://ssrn.com/abstract=3056604

Uwe Jirjahn (Contact Author)

University of Trier - Faculty of Economics ( email )

Trier, 54286
Germany

Stephen C. Smith

George Washington University - Department of Economics ( email )

2115 G Street NW
306 Monroe Hall
Washington, DC 20052
United States

HOME PAGE: http://https://www2.gwu.edu/~iiep/about/faculty/ssmith/

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