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

28 Pages Posted: 20 Jun 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

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Joachim Wagner

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

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Abstract

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.

Suggested Citation

Addison, John T. and Schnabel, Claus and Wagner, Joachim, The Course of Research into the Economic Consequences of German Works Councils. British Journal of Industrial Relations, Vol. 42, No. 2, pp. 255-281, June 2004. Available at SSRN: https://ssrn.com/abstract=537503

John T. Addison (Contact Author)

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

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IZA Institute of Labor Economics

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Claus Schnabel

University of Erlangen-Nuremberg ( email )

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IZA Institute of Labor Economics

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Joachim Wagner

University of Lueneburg - Institute of Economics ( email )

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HOME PAGE: http://www.uni-lueneburg.de/wifo

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

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Germany

IZA Institute of Labor Economics

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

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