With the reform of the Works Constitution Act in 2001 legislation has tried to stop the erosion of the institution of codetermination by facilating the creation of works councils and expanding their rights. The present paper examines the development of the presence of codetermination with pooled regression models and the impact of works councils on the training of the workforce with matching methods. We used data from the waves 1996-2005 of the IAB Establsihment Panel. The results of our analyses show that establishments with works councils have both a higher incidence and coverage of training of the workforce. However, a significant effect of the reform of the Works Constitution Act cannot be detected empirically.

September 20, 2016

Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions

Joachim Wagner, Thorsten Schank, Claus Schnabel, John T. Addison

Page range: 505-518

Abstract

Using OLS and quantile regression methods and rich cross-section data sets for western and eastern Germany, this paper demonstrates that the impact of works council presence on labor productivity varies between manufacturing and services, between plants that are or are not covered by collective bargaining, and along the conditional distribution of labor productivity. No productivity effects of works councils are found for the service sector and in manufacturing plants not covered by collective bargaining. Besides demonstrating that it is important to look at evidence based on more than one data set, our empirical findings point to the efficacy of supplementing OLS with quantile regression estimates when investigating the behavior of heterogeneous plants.

September 20, 2016

Mikroökonometrische Evaluation der ökonomischen Wirkungen betrieblicher Mitbestimmung - Möglichkeiten und Grenzen des Matching-Ansatzes / Microeconometric Evaluation of Economic Effects of Workers Participation - Options und Limits of the Matching Approach

Birgit Schultz

Page range: 519-536

Abstract

The evaluation of economic effects of workers participation is not simple from the methodical point of view because of specific characteristics of establishments with works councils. Especially recent studies show contradictory results. In this study problems are pointed out, discussed, and options for solution are presented on the example of workers participation in East German establishments of industry and construction by the IAB-Establishment Panel. An optimal matching-algorithm which supplies good matching-results for small samples to assign ‘statistical establishment-twins’ is applied. But by reason of very short primarily spells it can only calculate short time effects. Therefore, the matching method is additionally used to construct longer observation periods. By this new application establishments with recently founded works councils are matched with so called ‘proxy establishments’ with existing works councils. As a result short observation periods are prolonged and information about long-term effects can be given. The effects on productivity, profitability and qualification level of employees show neither in short-term nor in long-term a significant impact on workers’ participation.

September 20, 2016

Betriebsräte und Arbeitszufriedenheit / Works Councils and Job Satisfaction

Uwe Jirjahn, Georgi Tsertsvadze

Page range: 537-561

Abstract

Empirical studies on establishment-level codetermination usually focus on the impact of works councils on firm performance. Using data from the German Socio-Economic Panel, this is the first systematic research to examine the relationship between works councils and job satisfaction. It is shown that the relationship depends on the type of worker. The presence of a works council increases job satisfaction of full-time employed blue-collar workers. In general, councils do not have an influence on full-time employed white-collar workers. However, there is a negative association between works council presence and job satisfaction of managers. Furthermore, the presence of a workers council is associated with lower job satisfaction of non-full-time workers.

September 20, 2016

Kooperation zwischen Betriebsrat und Management / Cooperation between Works Council and Management

Die Sicht beider Seiten und deren Folgen / The View from Both Sides and its Consequences

Alexander Dilger

Page range: 562-587

Abstract

There are different kinds of works councils. They can be cooperative or antagonistic for example. There are also different kinds of management. The managers can be friendly or unfriendly to the workers and the works council representing them. Here the mutual relationship between works council and management is analysed. To this end two data sets are connected, the NIFA-Panel with information about mechanical engineering plants in Germany given by the management and the Bochumer survey of works councils in some of these plants. A new typology of the relationship between the works council and the managers of a firm is derived from these combined data. The effects of a positive, neutral or negative relationship on different turnover rates, product innovations and earnings of the firms are empirically analysed. The results are in accordance with prior studies using only separated data for works councils or management. Concretely, turnover and earnings are mostly lower and innovations more probable as long as any kind of works council exists. The kind of relationship influences the magnitudes of these effects and their statistical significance. A positive relationship reduces the departure rate most of all, a negative relationship has the strongest effect on innovations and, unexpectedly, an inconsistent relationship is best for earnings.

September 20, 2016

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

Kornelius Kraft, Marija Ugarkovič

Page range: 588-604

Abstract

Many observers regard the German system of codetermination as a very strong intervention into the working of the capital market. With the introduction of the codetermination law in 1976, employee representatives in limited liability companies with more than 2000 employees are entitled to occupy half of the number of seats and are granted nearly 50% of the voting rights on the supervisory board. We investigate the impact of the introduction of the German codetermination law in 1976 which implied an extension of co-determination from third parity to almost parity on return on equity. Our estimations are based on panel data for 179 companies from 1971 to 1976 and from 1981 to 1986, thus allowing for adjustment to the 1976 law. In contrast to frequently raised fears, no negative impact is found. Our empirical results suggest a positive influence from the 1976 strengthening of co-determination law on return on equity.

September 20, 2016

Buchbesprechungen / Book Reviews

Karl Heinrich Oppenländer

Page range: 605-608

About this journal

The Journal of Economics and Statistics (Jahrbücher für Nationalökonomie und Statistik) is a scientific journal published in Germany since 1863. The journal publishes papers in all fields of economics and applied statistics. A specific focus is on papers combining theory with empirical analyses. Papers providing conclusions for economic policy in Europe are particularly welcome. Nevertheless, distinguished papers dealing exlusively with economic theory, empirical models, or economic history, will not be excluded from consideration.

The editors invite replication studies focusing on the robustness of empirical findings. The section Data Observer presents articles on data sets available for empirical research and institutions providing research data. The journal also publishes special issues, short comments, and book reviews. All freely accessible contributions, including the Data Observer articles, can be found via the website's article search functionality.

Journal of Economics and Statistics now also at Twitter.

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Call for Papers

Special Issue on “Atypical Employment”

Guest editors: Regina T. Riphahn, Friedrich-Alexander-Universität Erlangen-Nürnberg
Conny Wunsch, Universität Basel

Timeline: Submission of full papers December 31, 2022

Further details

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Call for Papers

Special Issue on “Empirical Studies with Micro-Data from Official Statistics in Germany”

Guest editors: Thomas K. Bauer, Ruhr-University Bochum
Regina T. Riphahn, University of Erlangen-Nürnberg
Joachim Wanger, Leuphana University Lüneburg

Timeline: Submission of full papers (extended deadline) November 30, 2022

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Volume 226 Issue 5

Issue of Jahrbücher für Nationalökonomie und Statistik

Titelei

Inhalt / Contents

Editorial

Verbreitung von Betriebsräten und ihr Einfluss auf die betriebliche Weiterbildung / Works Council Presence and Impact on Training of the Workforce

Abstract

Works Councils, Labor Productivity and Plant Heterogeneity: First Evidence from Quantile Regressions

Abstract

Mikroökonometrische Evaluation der ökonomischen Wirkungen betrieblicher Mitbestimmung - Möglichkeiten und Grenzen des Matching-Ansatzes / Microeconometric Evaluation of Economic Effects of Workers Participation - Options und Limits of the Matching Approach

Abstract

Betriebsräte und Arbeitszufriedenheit / Works Councils and Job Satisfaction

Abstract

Kooperation zwischen Betriebsrat und Management / Cooperation between Works Council and Management

Die Sicht beider Seiten und deren Folgen / The View from Both Sides and its Consequences

Abstract

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

Abstract

Buchbesprechungen / Book Reviews