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The impact of Dutch works councils according to managers

Author

Listed:
  • A. van den Berg
  • Y.K. Grift
  • A. van Witteloostuijn

Abstract

Although works councils have, by and large, equally extensive legal rights in Germany and the Netherlands, this is the first econometric analysis that investigates the influence of Dutch works councils on firm performance. We use a nation-wide Dutch dataset with information on management’s perceptions of the works council’s impact on their firms’ efficiency and innovation. Inspired by the German study of Jirjahn and Smith (2006), we analyze which determinants influence management’s attitude toward employee participation in the Netherlands. We establish a preponderant influence emanating from the works council’s role attitude and management’s leadership style.

Suggested Citation

  • A. van den Berg & Y.K. Grift & A. van Witteloostuijn, 2009. "The impact of Dutch works councils according to managers," Working Papers 09-14, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:0914
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    References listed on IDEAS

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    1. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, June.
    2. Annette van den Berg, 2004. "The Contribution of Work Representation to Solving the Governance Structure Problem," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(2), pages 129-148.
    3. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    4. Olaf Hübler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, September.
    5. Addison, John T & Schnabel, Claus & Wagner, Joachim, 2001. "Work Councils in Germany: Their Effects on Establishment Performance," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 659-694, October.
    6. Edward Renshaw, 1995. "Analysis," Challenge, Taylor & Francis Journals, vol. 38(3), pages 53-56, May.
    7. Joel Rogers & Wolfgang Streeck, 1995. "Works Councils: Consultation, Representation, and Cooperation in Industrial Relations," NBER Books, National Bureau of Economic Research, Inc, number roge95-1.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    works councils; managerial response; effectiveness; efficiency; innovation;
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