Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58990
Authors: 
Kriechel, Ben
Mühlemann, Samuel
Pfeifer, Harald
Schuette, Miriam
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6497
Abstract: 
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 with firms without such an institution. We also find that the fraction of former trainees still employed with the same firm five 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.
Subjects: 
works councils
collective bargaining agreement
apprenticeship training
firm-sponsored training
JEL: 
J24
J50
M53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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