Do Works Councils Inhibit Investment?
By J. Addison, C. Schnabel, Joachim Wagner. Social Science Research Network, 2007
141 citations recorded by the source corpus.
Theory suggests that firms confront a hold-up problem in dealing with workplace unionism: unions will appropriate a portion of the quasi-rents stemming from long-lived capital. As a result, firms may be expected to limit their exposure to rent-seeking by reducing investments. The U.S. evidence points clearly in this direction. The authors of this paper investigate whether the same is true for German works councils, the analogue of workplace unionism in that nation. Using establishment panel data for the years 1998–2003, they find no evidence that a works council's formation adversely affected investment or that its dissolution favorably affected investment.
Subfields: Accounting, Political Science and International Relations, Public Administration
View Paper: https://www.semanticscholar.org/paper/d31eb62f14d97d3945732126cbace81d480dc898
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Political Science and International Relations
- B. Palier
- Kathleen Thelen
- Thomas Zwick
- J. Addison
- Paulino Teixeira
- Marius R. Busemeyer
- A. Verdun
- Tim Bartley
In Public Administration
- Thomas Zwick
- Kathleen Thelen
- J. Addison
- Paulino Teixeira
- Thomas Prosser
- Lucio Baccaro
- Christian Goebel
Citations in the corpus
- German Works Councils and the Anatomy of Wages (2010, background): “The more fundamental changes that have occurred in yet more recent years would seem to apply to both collective bargaining and works councils alike as the dual system of industrial relations has come under threat (see Addison et al., 2007).”
- Institutionalizing Dualism: Complementarities and Change in France and Germany (2010, background): “7 percent, primarily as a result of the decline of employment in manufacturing.(17) Despite the shift in jobs away from industry, membership in German unions still largely reflects employment structures of the 1960s, with strongholds in manufacturing and low representation in services.”
- Avoiding Labor Shortages by Employer Signaling: On the Importance of Good Work Climate and Labor Relations (2010, unknown): “So far, they have been extensively analyzed with respect to their impact on the incumbent workforce (e.g. Addison et al. 2007, Sako and Jackson 2006, Heywood and Jirjahn 2002, Bellmann and Blien 2001).”