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Reconciling the opposing economic effects of works councils across databases.

Mohrenweiser, J., 2021. Reconciling the opposing economic effects of works councils across databases. Industrielle Beziehungen. (In Press)

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Abstract

Recent studies on the economic effects of works councils in Germany using the European Company Survey estimate a significant negative effect of works councils on establishment productivity and profitability. These results are in stark contrast to studies using the IAB Establishment Panel estimating a significant positive effect of works councils on establishment productivity and profitability. This article scrutinises these empirical approaches. While sample selection and control variables have a substantial impact on the magnitude of marginal effects, the definition of the dependent variable as an objective or subjective measure causes the opposing signs. Beyond that, similar measures in both datasets lead to comparable marginal effects highlighting the relevance of the definition of the dependent variable for inferences and interpretation of studies about the effectiveness of industrial relations institutions and raising questions about the validity of the performance measures.

Item Type:Article
ISSN:0943-2779
Uncontrolled Keywords:works councils; codetermination; profitability
Group:Bournemouth University Business School
ID Code:35998
Deposited By: Symplectic RT2
Deposited On:15 Sep 2021 14:52
Last Modified:06 Apr 2022 10:36

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