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Co‐determination, Efficiency and Productivity
Author(s) -
FitzRoy Felix,
Kraft Kornelius
Publication year - 2005
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2005.00353.x
Subject(s) - productivity , panel data , german , economics , recession , hoarding (animal behavior) , human capital , labour economics , parity (physics) , demographic economics , econometrics , macroeconomics , economic growth , biology , ecology , physics , archaeology , foraging , particle physics , history
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.