author

Felix FitzRoy

University of St. Andrews

Theoretical arguments suggest that codetermination has scope for real efficiency gains in terms of both productivity & job satisfaction, but the latter is difficult to measure, while the former is mostly likely to show up in long-run data sets that are difficult to acquire. Data from 1972-76 and 1981-85 find codetermination had a small positive effect on productivity following the 1976 strengthening of codetermination laws. Codetermination can be explicitly designed to mitigate the conflict between efficiency and distributional goals. In 1994, between 98-100% of all German firms with 2000 employees or more had a works council, in contrast to only 17-20% of all firms. Theoretical models agree that there exists an 'optimal' degree of codetermination that maximizes for efficiency and productivity. Return on shareholder's equity declined between 1975 and 1983 for large German codetermined firms.
Efficient Redistribution: Comparing Basic Income with Unemployment Benefits Economic Effects of Codetermination Codetermination, Efficiency, and Productivity
Basic Income Codetermination
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