Comment on H. G. Monissen and E. Wenger: “Specific Human Capital and Collective Codetermination Rights”
If employees undertake firm-specific investments, whether in their own human capital or in other assets, then they have a stake in the performance of the firm. This possiblity has been interpreted by some observers, including a number of economists, politicians, and labor leaders, as providing an explanation as well as a theoretical justification for the German system of codetermination.
KeywordsFuture Return Transfer Price Employment Contract Theoretical Justification Specific Investment
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