Artikel

Do works councils raise or lower firm productivity?

The German model of co-determination (Mitbestimmung) with works councils, in which workers are involved in the management of a company, was a role model for other countries for many years. However, since the 1990s the appeal of works councils has been declining, to the extent that now even employees are sometimes voting against representation. This was recently demonstrated by workers at the Volkswagen factory in Chattanooga, Tennessee, who voted against union representation. An important question for firms and for policymakers is whether the adoption of a works council has a positive influence on a firm’s productivity and what the consequences are for a firm's profits.

Language
Englisch

Bibliographic citation
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2015 ; Bonn: Institute for the Study of Labor (IZA)

Classification
Wirtschaft
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Labor Force and Employment, Size, and Structure
Wage Level and Structure; Wage Differentials
Subject
works councils
productivity
employment
wages and profit effects

Event
Geistige Schöpfung
(who)
Hübler, Olaf
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2015

DOI
doi:10.15185/izawol.137
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Hübler, Olaf
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2015

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