In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works councils substantial information and co-determination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, we find that firms with works councils make a significantly higher net investment in training compared to firms without such an institution. We also find that the fraction of former trainees still employed with the same firm 5 years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. Furthermore, all works council effects are much more pronounced for firms covered by collective bargaining agreements."> In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works councils substantial information and co-determination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, we find that firms with works councils make a significantly higher net investment in training compared to firms without such an institution. We also find that the fraction of former trainees still employed with the same firm 5 years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. Furthermore, all works council effects are much more pronounced for firms covered by collective bargaining agreements."> In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works council">
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Works Councils, Collective Bargaining, and Apprenticeship Training – Evidence From German Firms

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  • Ben Kriechel
  • Samuel Muehlemann
  • Harald Pfeifer
  • Miriam Schütte
Abstract
type="main" xml:id="irel12061-abs-0001"> In this paper, we investigate the effects of works councils on apprenticeship training in Germany. The German law attributes works councils substantial information and co-determination rights to training-related issues. Thus, works councils may also have an impact on the cost-benefit relation of workplace training. Using detailed firm-level data containing information on the costs and benefits of apprenticeship training, we find that firms with works councils make a significantly higher net investment in training compared to firms without such an institution. We also find that the fraction of former trainees still employed with the same firm 5 years after training is significantly higher in the presence of works councils, thus enabling firms to recoup training investments over a longer time horizon. Furthermore, all works council effects are much more pronounced for firms covered by collective bargaining agreements.

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  • 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.
    • Handle: RePEc:bla:indres:v:53:y:2014:i:2:p:199-222
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    Cited by:

    1. Samuel Muehlemann & Harald Pfeifer & Bernhard Wittek, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," Economics of Education Working Paper Series 0171, University of Zurich, Department of Business Administration (IBW).
    2. Uwe Jirjahn & Jens Mohrenweiser, 2021. "Works councils and organizational gender policies in Germany," British Journal of Industrial Relations, London School of Economics, vol. 59(4), pages 1020-1048, December.
    3. Uwe JIRJAHN & Stephen C. SMITH, 2018. "Nonunion Employee Representation: Theory And The German Experience With Mandated Works Councils," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 201-233, March.
    4. Jens MohrenweiserBy & Gabriele Wydra-Somaggio & Thomas Zwick, 2020. "Information advantages of training employers despite credible training certificates," Oxford Economic Papers, Oxford University Press, vol. 72(3), pages 651-671.
    5. repec:bla:annpce:v:89:y:2018:i:1:p:201-233 is not listed on IDEAS
    6. Jonathan Woodside & Tara Vinodrai & Markus Moos, 2021. "Bottom-up strategies, platform worker power and local action: Learning from ridehailing drivers," Local Economy, London South Bank University, vol. 36(4), pages 325-343, June.
    7. Bellmann, Lutz & Hübler, Olaf & Leber, Ute, 2018. "Works Councils, Training and Employee Satisfaction," IZA Discussion Papers 11871, Institute of Labor Economics (IZA).
    8. Burdin, Gabriel & Kato, Takao, 2021. "Complementarity in Employee Participation Systems," GLO Discussion Paper Series 968, Global Labor Organization (GLO).
    9. Scholz, Robert, 2021. "Labour in the Board and Good Work: How to Measure and Evidence From Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(3), pages 219-243.
    10. Mohrenweiser, Jens & Wydra-Sommaggio, Gaby & Zwick, Thomas, 2015. "Work-related ability as source of information advantages of training employers," ZEW Discussion Papers 15-057, ZEW - Leibniz Centre for European Economic Research.
    11. Alexander Lammers & Felix Lukowski & Kathrin Weis, 2023. "The relationship between works councils and firms’ further training provision in times of technological change," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 392-424, June.
    12. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).
    13. 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).
    14. Dummert Sandra & Leber Ute & Schwengler Barbara, 2019. "Unfilled Training Positions in Germany – Regional and Establishment-Specific Determinants," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(4), pages 661-701, August.
    15. Fabio Berton & Anna Carreri & Francesco Devicienti & Andrea Ricci, 2023. "The collective voice of unions and workplace training in Italy: New insights from mixed methods," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 595-622, September.
    16. Burdin, Gabriel & Kato, Takao, 2021. "Complementarity in Employee Participation Systems: International Evidence," IZA Discussion Papers 14694, Institute of Labor Economics (IZA).
    17. Olaf Hübler, 2015. "Do works councils raise or lower firm productivity?," IZA World of Labor, Institute of Labor Economics (IZA), pages 137-137, March.
    18. Bernhard H. Wittek & Samuel Muehlemann, 2021. "The consequences of EU eastern enlargement on human capital accumulation and wages in Germany," Economics of Education Working Paper Series 0184, University of Zurich, Department of Business Administration (IBW).
    19. John S. Heywood & Uwe Jirjahn, 2016. "The hiring and employment of older workers in Germany: a comparative perspective [Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland: Eine vergleichende Perspektive]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 349-366, December.
    20. Wen Wang & Jason Heyes & Roger Seifert, 2023. "Trade union influence on innovation in the British private sector: Direct and indirect paths," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(2), pages 604-627, May.
    21. Harald Pfeifer & Uschi Backes-Gellner, 2017. "Another piece of the puzzle: Firms' investment in training as optimization of skills inventory," Economics of Education Working Paper Series 0136, University of Zurich, Department of Business Administration (IBW), revised Jun 2018.

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