|Title||Works Councils, Collective Bargaining, and Apprenticeship Training – Evidence From German Firms|
|Publication Type||Journal Article|
|Year of Publication||2014|
|Authors||Kriechel, Ben, Muehlemann, Samuel, Pfeifer, Harald, and Schütte, Miriam|
|Journal||Industrial Relations: A Journal of Economy and Society|
|Pagination||199 - 222|
|Keywords||apprenticeship Training, collective bargaining, Germany, workplace training, works Councils|
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.