Works Councils and Plant Closings in Germany

24 Pages Posted: 10 Apr 2004

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Lutz Bellmann

Institute for Employment Research (IAB); Institute for the Study of Labor (IZA)

Arnd Kölling

Berlin School of Economics and Law

Abstract

This paper is the first study to investigate the impact of workplace representation on plant closings in Germany, using data from a nationally representative establishment panel. Across all establishments in our sample, we find evidence of a positive association between works council presence and plant closings. There is the contrary suggestion that industry-wide collective bargaining plays a neutral to benign role. As for the interaction between collective bargaining and workplace representation, this appears strongest for establishments with fewer than 50 employees: such plants are much more likely to close if they have a works council and are not covered by a collective agreement.

Suggested Citation

Addison, John T. and Bellmann, Lutz and Kölling, Arnd, Works Councils and Plant Closings in Germany. British Journal of Industrial Relations, Vol. 42, No. 1, pp. 125-148, March 2004. Available at SSRN: https://ssrn.com/abstract=513355

John T. Addison (Contact Author)

University of South Carolina - Moore School of Business - Department of Economics ( email )

The Francis M. Hipp Building
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Columbia, SC 29208
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HOME PAGE: http://mooreschool.sc.edu/moore/economics/profiles/addison.htm

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lutz Bellmann

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany
+49 911 179 3046 (Phone)
+49 911 179 3297 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Arnd Kölling

Berlin School of Economics and Law ( email )

Alt-Friedrichsfelde 60
Berlin, D-10315
Germany

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