Using a large panel data set we investigate whether works councils act as a sand or grease in the operation of German firms. Stochastic production frontier analysis indicates that establishments with and without a works council do not exhibit significant differences in efficiency

In a survey published in this Journal, Frege (2002) evaluates research on the German works council from the perspective of several disciplines, including economics. Ultimately, she concludes that economic analysis of the works council has reached a "dead end". The present treatment offers a very...

Eine empirische Untersuchung mit einem großen Betriebsdatensatz macht deutlich, dass direkte Arbeitnehmerpartizipation in Form von Gruppenarbeit und regelmäßigen Mitarbeitergesprächen in mehr Industriebetrieben zu finden ist als repräsentative Partizipation durch Betriebsräte. Die...

German law guaranteeing works councils is not a datum. The thrust of legislation has changed significatly on a number of occasions since 1920. The most recent legal change in the form of the Works Constitution Reform Act marks a controversial swing in favor of works council formation and...

In its 1998 final report, the German Co-determination Commission identified a large and growing sector of the economy in which employees are covered neither by participation on company boards nor through the vehicle of works councils. The Commission argued that the steady erosion of...