The Dynamic Effects of Works Councils on Labour Productivity: First Evidence from Panel Data

• Autores: Steffen Mueller, Jens Stegmaier
• Localización: British journal of industrial relations, ISSN 0007-1080, Vol. 55, Nº. 2, 2017, págs. 372-395
• Idioma: inglés
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• Resumen

  • We estimate dynamic effects of works councils on labour productivity using newly available information from West German establishment panel data. Conditioning on plant fixed effects and control variables, we find negative productivity effects during the first five years after council introduction but a steady and substantial increase in the councils’ productivity effect thereafter. Our findings support a causal interpretation for the positive correlation between council existence and plant productivity that has been frequently reported in previous studies.