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- Title
Works councils and employment growth in German establishments.
- Authors
Jirjahn, Uwe
- Abstract
Using data from German manufacturing establishments, this article examines the relationship between works councils and employment growth. Taking the endogeneity of councils into account, the estimates show a positive growth effect of works councils. This suggests that the performance-enhancing voice role of German works councils dominates their monopoly role. Moreover, the findings of this study support the hypothesis that workers are more likely to implement a council to protect their quasi-rents when the establishment is facing a long-term crisis.
- Subjects
GERMANY; WORKS councils; EMPLOYMENT; MANUFACTURING industries; MONOPOLIES
- Publication
Cambridge Journal of Economics, 2010, Vol 34, Issue 3, p475
- ISSN
0309-166X
- Publication type
Article
- DOI
10.1093/cje/bep012