Arbeitspapier

Works councils and collective bargaining in Germany: A simple but crucial theoretical extension

A model by Huebler and Jirjahn (2003) suggests that rent-seeking activities of works councils are more limited in establishments covered by collective bargaining. The model predicts that works councils should have a stronger productivity effect and a weaker wage effect in covered than in uncovered establishments. While empirical studies have provided supporting evidence for the predicted productivity effects, the results on the wage effects of works councils in covered and uncovered establishments are very mixed. This article extends Huebler and Jirjahn's model to reconcile the empirical findings. The extended model takes into account that collective bargaining coverage not only limits the opportunities for rent-seeking activities but also strengthens the effectiveness of performance-enhancing work practices negotiated between employers and works councils. The latter influence of collective bargaining coverage can result in a higher wage effect of works councils in covered establishments.

Sprache
Englisch

Erschienen in
Series: Research Papers in Economics ; No. 13/14

Klassifikation
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Trade Unions: Objectives, Structure, and Effects
Labor-Management Relations; Industrial Jurisprudence
Thema
Works Council
Collective Bargaining Coverage
Productivity
Wages

Ereignis
Geistige Schöpfung
(wer)
Jirjahn, Uwe
Ereignis
Veröffentlichung
(wer)
Universität Trier, Fachbereich IV – Volkswirtschaftslehre
(wo)
Trier
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Jirjahn, Uwe
  • Universität Trier, Fachbereich IV – Volkswirtschaftslehre

Entstanden

  • 2014

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