Works Councils and the Productivity Impact of Direct Employee Participation


Zwick, Thomas


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URL: http://ub-madoc.bib.uni-mannheim.de/157
URN: urn:nbn:de:bsz:180-madoc-1573
Document Type: Working paper
Year of publication: 2003
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D24 C23 J50 M12 ,
Subject headings (SWD): Deutschland , Arbeitsproduktivität , Betriebsrat
Abstract: This paper measures the productivity impact of management-led participative establishment practices. On the basis of a representative German establishment data set, the IAB establishment panel, the study finds that the presence of team-work, a reduction of hierarchies and autonomous work groups in 1997 significantly increases average establishment productivity in 1997 2000. An endogeneous switching regression model takes the endogeneity of work councils into account and shows that the productivity effect can only be measured in establishments with works councils, i.e. employee induced participation. The estimation strategy controls for unobserved time invariant establishment heterogeneity by using a two-step system GMM panel regression approach. It simultaneously controls for endogeneity of participative work organization by using instrument variable regressions.
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Zwick, Thomas (2003) Works Councils and the Productivity Impact of Direct Employee Participation. Open Access [Working paper]
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