Co-Determination, Efficiency, and Productivity

29 Pages Posted: 5 Jan 2005

See all articles by Felix R. Fitzroy

Felix R. Fitzroy

University of St. Andrews; IZA Institute of Labor Economics

Kornelius Kraft

University of Dortmund - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 2004

Abstract

We present the first panel estimates of the productivity effects of the unique German institution of parity, board-level co-determination. Although our data span two severe recessions when labour hoarding costs of co-determination are probably highest, and the panel is too short to capture the likely long run benefits in terms of human capital formation and job satisfaction, we find positive productivity effects of the 1976 extension to parity co-determination in large firms.

Keywords: co-determination, employee involvement, productivity

JEL Classification: D2, J5, L2

Suggested Citation

Fitzroy, Felix R. and Kraft, Kornelius, Co-Determination, Efficiency, and Productivity (December 2004). Available at SSRN: https://ssrn.com/abstract=643645

Felix R. Fitzroy (Contact Author)

University of St. Andrews ( email )

St Salvator's College
St Andrews, Fife, KY16 9AJ
United Kingdom
+44 1334 462437 (Phone)
+44 1334 462444 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kornelius Kraft

University of Dortmund - Department of Economics ( email )

D-44221 Dortmund
Germany
+49 231 755-3152 (Phone)
+49 231 755-3155 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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