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Works councils, wages and job satisfaction

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  • Christian Grund
  • Andreas Schmitt

Abstract

We investigate the effects of works councils on employees' wages and job satisfaction in general and for subgroups with respect to sex and occupational status. Making use of a German representative sample of employees, we find that employees, who move to a firm with a works council, report increases in job satisfaction, but do not receive particular wage increases. Especially the job satisfaction of female employees is affected by a change in works council status. However, we do not find support for the hypothesis that the introduction of a works council itself increases wages or job satisfaction for the employees staying at the firm.

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  • Christian Grund & Andreas Schmitt, 2013. "Works councils, wages and job satisfaction," Applied Economics, Taylor & Francis Journals, vol. 45(3), pages 299-310, January.
    • Handle: RePEc:taf:applec:45:y:2013:i:3:p:299-310
    DOI: 10.1080/00036846.2011.597735
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    2. Khoury, Laura, 2023. "Unemployment benefits and redundancies: Incidence and timing effects," Journal of Public Economics, Elsevier, vol. 226(C).
    3. Grund, Christian & Sliwka, Dirk & Titz, Krystina, 2023. "Works Councils as Gatekeepers: Codetermination, Monitoring Practices, and Job Satisfaction," IZA Discussion Papers 15956, Institute of Labor Economics (IZA).
    4. Goerke, Laszlo & Huang, Yue, 2022. "Job satisfaction and trade union membership in Germany," Labour Economics, Elsevier, vol. 78(C).
    5. Laura Khoury, 2021. "Unemployment Benefits and the Timing of Redundancies," Working Papers halshs-02057145, HAL.
    6. Diriwaechter, Patric & Shvartsman, Elena, 2018. "The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 116-140.
    7. Bellmann, Lutz & Hübler, Olaf & Leber, Ute, 2018. "Works Councils, Training and Employee Satisfaction," IZA Discussion Papers 11871, Institute of Labor Economics (IZA).
    8. Grund, Christian & Sliwka, Dirk & Titz, Krystina, 2019. "Works Councils and Performance Appraisals," IZA Discussion Papers 12670, Institute of Labor Economics (IZA).
    9. Steffen Müller & Jens Stegmaier, 2020. "Why is there resistance to works councils in Germany? An economic perspective," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 41(3), pages 540-561, August.
    10. Samtleben, Claire & Bringmann, Julia & Bünning, Mareike & Hipp, Lena, 2019. "What Helps and What Hinders? Exploring the Role of Workplace Characteristics for Parental Leave Use and Its Career Consequences," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(10), pages 1-1.
    11. Daniel Arnold & Tobias Brändle & Laszlo Goerke, 2018. "Sickness Absence and Works Councils: Evidence from German Individual and Linked Employer–Employee Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(2), pages 260-295, April.
    12. Laura Khoury, 2019. "Unemployment Benefits and the Timing of Redundancies: Evidence from Bunching," PSE Working Papers halshs-02057145, HAL.
    13. Adam Julian B., 2019. "Voluntary Quits: Do Works Councils Matter? An Analysis of the Reform of the German Works Constitution Act 2001," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 67-109, January.
    14. Christian Grund & Johannes Martin, 2017. "The Role of Works Councils for Severance Payments," SOEPpapers on Multidisciplinary Panel Data Research 913, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Artz, Benjamin & Heywood, John S., 2020. "Unions, Worker Participation and Worker Well-Being," GLO Discussion Paper Series 705, Global Labor Organization (GLO).
    16. Uwe Jirjahn & Jens Mohrenweiser, 2016. "Owner-Managers and the Failure of Newly Adopted Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 54(4), pages 815-845, December.
    17. FitzRoy, Felix & Nolan, Michael A., 2020. "Towards Economic Democracy and Social Justice: Profit Sharing, Co-Determination, and Employee Ownership," IZA Discussion Papers 13238, Institute of Labor Economics (IZA).
    18. Laszlo Goerke & Sabrina Jeworrek, 2021. "Paid vacation use: The role of works councils," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 42(3), pages 473-503, August.
    19. Grund, Christian & Schmitt, Andreas, 2013. "Works Councils, Quits and Dismissals in Germany," IZA Discussion Papers 7361, Institute of Labor Economics (IZA).
    20. Clément Brébion, 2022. "The wage impact of being a works council representative in Germany: A case of strategic discrimination?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 418-455, October.
    21. Olaf Hübler, 2015. "Do works councils raise or lower firm productivity?," IZA World of Labor, Institute of Labor Economics (IZA), pages 137-137, March.
    22. Alexi Danchev & Erkan Ilgün, 2013. "Job Performance, Job Satisfaction and Human Capital in the Labour Market in Bosnia," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 2(1), pages 25-44.
    23. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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