November 2002

IZA DP No. 648: Works Councils – Sand or Grease in the Operation of German Firms?

published in: Applied Economics Letters, 2004, 11 (3), 159–161

Using a large panel data set we investigate whether works councils act as sand or grease in the operation of German firms. Stochastic production frontier analysis indicates that establishments with and without a works council do not exhibit significant differences in efficiency.