Do works councils inhibit investment?

Industrial and Labor Relations Review

Volumn 60, Issue 2, 2007, Pages 187-203

  Addison, John T ^a,b,c   Schank, Thorsten ^d   Schnabel, Claus ^d   Wagner, Joachim ^e  

^a UNIVERSITY OF SOUTH CAROLINA   (United States)

^b QUEEN'S UNIVERSITY BELFAST   (United Kingdom)

^c UNIVERSITY OF COIMBRA   (Portugal)

^d UNIVERSITY OF ERLANGEN NUREMBERG   (Germany)

^e LEUPHANA UNIVERSITY OF LÜNEBURG   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33846947986     PISSN: 00197939     EISSN: None     Source Type: Journal    
DOI: 10.1177/001979390706000202     Document Type: Article

References (38)

1. Addison, John T., and Clive Belfield. 2004. "Union Voice." Journal of Labor Research, Vol. 25, No. 4 (Fall), pp. 563-96.
2. Addison, John T., Lutz Bellmann, Claus Schnabel, and Joachim Wagner. 2003. "German Works Councils Old and New: Incidence, Coverage, and Determinants." Schmollers Jahrbuch, Vol. 123, No. 3, pp. 339-58.
3. Addison, John T., and John Chilton. 1998. "Self-Enforcing Union Contracts: Efficient Investment and Employment." Journal of Business, Vol. 71, No. 3 (July), pp. 349-69.
4. Addison, John T., Kornelius Kraft, and Joachim Wagner. 1993. "German Works Councils and Firm Behavior." In Bruce E. Kaufman and Morris M. Kleiner, eds., Employee Representation: Alternatives and Future Directions. Madison, Wis.: Industrial Relations Research Association, pp. 305-38.
5. Addison, John T., Claus Schnabel, and Joachim Wagner. 2001. "Works Councils in Germany: Their Effects on Establishment Performance." Oxford Economic Papers, Vol. 53, No. 4 (October), pp. 659-94.
6. Addison, John T., Claus Schnabel, and Joachim Wagner. 2004. "The Course of Research into the Economic Consequences of German Works Councils." British Journal of Industrial Relations, Vol. 42, No. 2 (June), pp. 255-81.
7. Baldwin, Carliss Y. 1983. "Productivity and Labor Unions: An Application of the Theory of Self-Enforcing Contracts." Journal of Business, Vol. 56, No. 2 (April), pp. 155-85.
8. Benson, John. 1994. "The Economic Effects of Unionism on Japanese Manufacturing Enterprises." British Journal of Industrial Relations, Vol. 32, No. 1 (March), pp. 1-21.
9. Bond, Stephen, Dietmar Harhoff, and John Van Reenen. 2003. "Investment, R&D, and Financial Constraints in Britain and Germany." CEP Discussion Paper No. 595, London School of Economics, December.
10. Bond, Stephen, and John Van Reenen. 2003. "Microeconometric Models of Investment and Employment." Unpublished paper, Nuffield College, Oxford.
11. Bronars, Stephen G., and Donald R. Deere. 1993. "Unionization, Incomplete Contracting, and Capital Investment." Journal of Business, Vol. 66, No. 1 (January), pp. 117-32.
12. Bronars, Stephen G., Donald R. Deere, and Joseph S. Tracy. 1994. "The Effects of Unions on Firm Behavior: Am Empirical Analysis Using Firm-Level Data." Industrial Relations, Vol. 33, No. 4 (October), pp. 426-51.
13. Cavanaugh, Joseph K. 1998. "Asset-Specific Investment and Unionized Labor." Industrial Relations, Vol. 37, No. 1 (January), pp. 35-50.
14. Denny, Kevin, and Stephen J. Nickell. 1992. "Unions and Investment in British Industry." Economic Journal, Vol. 102, No. 413 (July), pp. 874-87.
15. Fallick, Bruce C., and Kevin A. Hassett. 1999. "Investment and Union Certification." Journal of Labor Economics, Vol. 17, No. 3 (July), pp. 570-82.
16. Freeman, Richard B., and James L. Medoff. 1984. What Do Unions Do? New York, N.Y: Basic Books.
17. Freeman, Richard B., and Edward P. Lazear. 1995. "An Economic Analysis of Works Councils." In Joel Rogers and Wolfgang Streeck, eds., Works Councils: Consultation, Representation and Cooperation in Industrial Relations. Chicago: Chicago University Press, pp. 27-52.
18. Gerlach, Knut, Olaf Hübler, and Wolfgang Meyer. 2002. "Investitionen, Weiterbildung und betriebliche Reorganisation." Mitteilungen aus der Arbeitsmarkt-und Berufsforschung, Vol. 35, No. 4, pp. 546-65.
19. Grout, Paul A. 1984. "Investment and Wages in the Absence of Binding Contracts: A Nash Bargaining Approach." Econometrica, Vol. 46, No. 2 (March), pp. 449-60.
20. Heckman, James, Robert LaLonde, and Jeffrey Smith. 1999. "The Economics and Econometrics of Active Labor Market Programs." In Orley C. Ashenfelter and David Card, eds., Handbook of Labor Economics, Vol. 3A. Amsterdam: North-Holland, pp. 1865-2097.
21. Hirsch, Barry T. 1991. Labor Unions and the Economic Performance of Firms. Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.
22. Hirsch, Barry T. 1992. "Firm Investment Behavior and Collective Bargaining Strategy." Industrial Relations, Vol. 31, No. 1 (Winter), pp. 95-121.
23. Hirsch, Barry T., and Kislaya Prasad. 1995. "Wage-Employment Determination and a Union Tax on Capital: Can Theory and Evidence Be Reconciled?" Economics Letters, Vol. 48, No. 1 (April), pp. 61-71.
24. Hübler, Olaf. 2003. "Zum Einfluss des Betriebsrates in mittelgroßen Unternehmen auf Investitionen, Löhne, Produktivität und Renten - Empirische Befunde." In Nils Goldschmidt, ed., Wunderbare Wirtschafts Welt - Die New Economy und ihre Herausforderungen. Baden-Baden: Nomos, pp. 77-94.
25. Hübler, Olaf, and Uwe Jirjahn. 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages." Scottish Journal of Political Economy, Vol. 50, No. 4 (September), pp. 471-91.
26. Jorgenson, Dale. 1963. "Capital Theory and Investment Behavior." American Economic Review Papers and Proceedings, Vol. 53, No. 2 (May), pp. 247-59.
27. Kirchesch, Kai. 2004. "Financial Risks, Bankruptcy Probabilities, and the Investment Behaviour of Enterprises." HWWA Institute for Economic Research Discussion Paper No. 299, Hamburg, October.
28. Kölling, Arnd. 2000. "The IAB-Establishment Panel." Schmollers Jahrbuch, Vol. 120, No. 2, pp. 291-300.
29. Kraft, Kornelius, and Jörg Stank. 2004. "Die Auswirkungen der gesetzlichen Mitbestimmung auf die Innovationsaktivität deutscher Unternehmen." Schmollers Jahrbuch, Vol. 124, No. 3, pp. 421-49.
30. Leuven, Edwin, and Barbara Sianesi. 2003. "PSMATCH2: Stata Module to Perform Full Mahalanobis and Propensity Score Matching, Common Support Graphing, and Covariate Imbalance Testing." Statistical Software Components S432001, Department of Economics, Boston College.
31. Machin, Stephen, and Sushil Wadhwani. 1991. "The Effects of Unions on Investment and Innovation - Evidence from WIRS." Economic Journal, Vol. 101, No. 405 (March), pp. 324-30.
32. Menezes-Filho, Naercio, and John Van Reenen. 2003. "Unions and Innovation: A Survey of the Theory and Empirical Evidence." In John T. Addison and Claus Schnabel, eds., International Handbook of Trade Unions. Cheltenham, England, and Northampton, Mass.: Edward Elgar, pp. 293-334.
33. Müller-Jentsch, Walter. 1995. "Germany: From Collective Voice to Co-Management." In Joel Rogers and Wolfgang Streeck, eds., Works Councils: Consultation, Representation and Cooperation in Industrial Relations. Chicago: Chicago University Press, pp. 53-78.
34. Neubäumer, Renate, and Susanne Kohaut. 2002. "Unternehmen investieren nicht nur in Sachkapital." Zeitschrift für Betriebswirtschaft, Vol. 72, No. 4, pp. 403-27.
35. Odgers, Cameron W., and Julian R. Betts. 1997. "Do Unions Reduce Investment? Evidence from Canada." Industrial and Labor Relations Review, Vol. 51, No. 1 (October), pp. 18-36.
36. Rubin, Don. 1974. "Estimating Causal Effects of Treatments in Randomized and Non-randomized Studies." Journal of Educational Psycholog, Vol. 66, pp. 688-701.
37. Schnabel, Claus, and Joachim Wagner. 1994. "Industrial Relations and Trade Union Effects on Innovation in Germany." Labour, Vol. 8, No. 3 (Autumn), pp. 489-503.
38. Van der Ploeg, Frederick. 1987. "Trade Unions and Investment: A Noncooperative Approach." European Economic Review, Vol. 31, No. 4 (October), pp. 1465-92.