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Gender, Worker Representation and the Profitability of Firms in Germany

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  • Uwe Jirjahn

Abstract

Recent research has shown that the unexplained gender wage gap is smaller in establishments where a works council is present. The finding raises the question of whether establishment-level codetermination reduces gender wage discrimination or whether it reduces a wage differential that reflects productivity differences between men and women. This study addresses the question by examining the association between the share of female employees and profitability. Using data from manufacturing establishments, the empirical analysis suggests that there is a positive association between the share of women and profitability in establishments without a works council while there is no association in establishments with a works council. These results support the hypothesis that establishment-level codetermination reduces gender-specific wage discrimination

Suggested Citation

  • Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 281-298, December.
    • Handle: RePEc:liu:liucej:v:8:y:2011:i:2:p:281-298
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    Cited by:

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    2. Uwe Jirjahn & Thi Xuan Thu Le, 2024. "Political spillovers of workplace democracy in Germany," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 5-31, March.
    3. Uwe Jirjahn & Jens Mohrenweiser, 2021. "Works councils and organizational gender policies in Germany," British Journal of Industrial Relations, London School of Economics, vol. 59(4), pages 1020-1048, December.

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    More about this item

    Keywords

    Women; Discrimination; Profitability; Works Councils; Piece Rates;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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