Template-Type: ReDIF-Paper 1.0 Author-Name: Steffen Mueller Author-X-Name-First: Steffen Author-X-Name-Last: Mueller Title: The Productivity Effect of Non-Union Representation Abstract: Declining union density in many industrialized countries directs attention to alter- native ways of labor relations and worker representation as, e.g., works councils. German works councils belong to the most powerful worker representations in de- veloped countries but little is known of their causal effect on productivity. A large linked employer-employee panel is used to examine this issue. Comparing firms with and without a works council I find that firms with a works council are on average 6.5 percent more productive. I present evidence that this estimate is the lower bound to the causal productivity effect of works councils. Length: 23 pages Creation-Date: 2009-06 File-URL: http://www.bgpe.de/texte/DP/074_mueller.pdf File-Format: Application/pdf File-Function: First version, 2009 Number: 074 Classification-JEL: D24; J53 Keywords: worker participation, works council, productivity Handle: RePEc:bav:wpaper:074_mueller