Labour in the boardroom: the effects of codetermination on firm performance and wages
Heining, Jörg ; Jäger, Simon ; Schoefer, Benjamin
Centre for Economic Policy Research, London
CEPR - London
2020
epidemic disease ; codetermination ; wages
Workers participation and European works councils
https://voxeu.org/article/codetermination-firm-performance-and-wages
English
"Many countries, especially in Europe, are characterised by shared governance institutions that grant workers formal authority in firms' decision-making. This column uses a natural experiment: a 1994 reform in Germany that abolished worker-elected directors in certain new firms and permanently preserved them in others, to provide empirical evidence on the effects of shared governance. It finds that shared governance can lead to an increase in capital formation and discusses the mechanisms which may lead to this result."
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