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Works Councils and Apprenticeship Training: Heterogeneous Works Councils, Heterogeneous Effects?

Author

Listed:
  • Kathrin Weis
  • Samuel Muehlemann
  • Harald Pfeifer

Abstract

In Germany, works councils possess co-determination rights concerning apprenticeship training, which may influence training outcomes in firms. While the literature commonly assumes homogeneous effects of works councils, this study reveals considerable heterogeneity in their involvement in training-related decisions. Using representative German firm-level data, we explore two dimensions of works councils' heterogeneity: their participation in various decisions and their success in enforcing agendas. We document the extent to which works councils influence decisions on hiring apprentices, determining the number of apprentices, and retention after training. Our findings indicate that works council participation is associated with higher training propensity and retention rates, but no significant effect on the number of apprentices hired. However, the number of apprentices is notably higher in firms with collective bargaining agreements. Interestingly, works councils that are rated as successful are associated with lower retention rates, highlighting potential conflicts between representing the interests of apprentices and those of other worker groups.

Suggested Citation

  • Kathrin Weis & Samuel Muehlemann & Harald Pfeifer, 2024. "Works Councils and Apprenticeship Training: Heterogeneous Works Councils, Heterogeneous Effects?," Economics of Education Working Paper Series 0233, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:iso:educat:0233
    as

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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0233_lhwpaper.pdf
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    References listed on IDEAS

    as
    1. Simon Jäger & Shakked Noy & Benjamin Schoefer, 2022. "The German Model of Industrial Relations: Balancing Flexibility and Collective Action," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 53-80, Fall.
    2. Askildsen, Jan Erik & Jirjahn, Uwe & Smith, Stephen C., 2006. "Works councils and environmental investment: Theory and evidence from German panel data," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 346-372, July.
    3. John T. Addison & Paulino Teixeira & Lutz Bellmann, 2020. "Management Practices and Establishment Performance under Non-Union Workplace Representation," CESifo Working Paper Series 8599, CESifo.
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    5. Christian Dustmann & Uta Schönberg, 2009. "Training and Union Wages," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 363-376, May.
    6. Christian Pfeifer, 2011. "The Heterogeneous Economic Consequences of Works Council Relations," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(1), pages 59-71.
    7. Ben Kriechel & Samuel Muehlemann & Harald Pfeifer & Miriam Schütte, 2014. "Works Councils, Collective Bargaining, and Apprenticeship Training – Evidence From German Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(2), pages 199-222, April.
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    More about this item

    Keywords

    Works council heterogeneity; apprenticeship training; training quality;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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