Works councils: an agency perspective

This paper investigates the role of works councils in a simple agency framework in which works councils are supposed to monitor manager’s information on behalf of the workforce, but they are independent agents who might pursue their private interest. First, we consider that workers can incentivize works councils through contingent monetary payments. In order to deter collusion, workers must pay higher compensations in states of nature where they can be expropriated by potential coalitions among works councils and management. Collusion makes contingent payments costly and reduces workers’ payoffs. Second, when elections are the exclusive mechanisms to align works councils’ interest, only well compensated representatives would face an intertemporal tradeoff between accepting management’s transfers at first period and losing rents at the second period. Elections increase the cost of entering on collusive behavior with management and works councils will try to behave on the employees’ interest.

Crisis of political representation and democratization in Mexico: the generality and specificity of the case

This article attempts to assess the implications and the own character of the crisis of representation in Mexico. Once the topic framed and the long-term dynamics of Mexican political elites presented, this paper will attempt to understand why, despite the pluralization of the party system, there remain many questions about the truly democratic nature of the Mexican political system.