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

33 Pages Posted: 25 Feb 2018

See all articles by Uwe Jirjahn

Uwe Jirjahn

University of Trier - Faculty of Economics

Stephen C. Smith

George Washington University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: March 2018

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 (March 2018). Annals of Public and Cooperative Economics, Vol. 89, Issue 1, pp. 201-233, 2018, Available at SSRN: https://ssrn.com/abstract=3129125 or http://dx.doi.org/10.1111/apce.12191

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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