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Nonunion Worker Representation and the Closure of Establishments: German Evidence on the Role of Moderating Factors

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  • Uwe Jirjahn
Abstract
This article examines the relationship between works councils and the closure of manufacturing establishments in Germany. The relationship varies according to circumstances and type of establishment. For the subsample of single-establishment firms, the estimates show that works council presence interacts with the coverage by a collective bargaining agreement. The presence of a works council is associated with a higher probability of closure within the uncovered industrial relations regime but not within the covered regime. For establishments being parts of multi-establishment firms, works council presence is associated with a lower probability of closure. This specifically holds true if establishments face adverse economic conditions.

Suggested Citation

  • Uwe Jirjahn, 2010. "Nonunion Worker Representation and the Closure of Establishments: German Evidence on the Role of Moderating Factors," Research Papers in Economics 2010-01, University of Trier, Department of Economics.
    • Handle: RePEc:trr:wpaper:201001
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    More about this item

    Keywords

    Codetermination; Collective Bargaining; Ownership Type; Competition; Plant Survival;
    All these keywords.

    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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