Worker directors: a German product that didn't export?

John Addison and Claus Schnabel

No 61, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Despite its lack of attractiveness to other countries, the German system of quasi-parity codetermination at company level has held up remarkably well. We recount the theoretical arguments for and against codetermination and survey the empirical evidence on the effects of the institution, tracing the three phases of a still sparse literature. Recent findings hold out the prospect that good corporate governance might include employee representation by virtue of the monitoring function and the reduction in agency costs, while yet cautioning that the optimal level of representation is likely below parity. And although the German system may be better than its reputation among foreigners, it might have to adapt to globalization and the availability of alternative forms of corporate governance in the EU.

Keywords: codetermination; worker directors; board-level employee representation; firm performance; Germany (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-ltv
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Related works:
Journal Article: Worker Directors: A German Product that Did Not Export? (2011)
Working Paper: Worker Directors: A German Product that Didn’t Export? (2009)
Working Paper: Worker Directors: A German Product that Didn't Export? (2009)
Working Paper: Worker Directors: A German Product that Didn’t Export? (2009)
Working Paper: Worker Directors: A German Product that Didn't Export? (2009)
Working Paper: Worker directors: a German product that didn't export? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:faulre:61

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