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Worker Representatives

Author

Listed:
  • Julian Budde
  • Thomas Dohmen
  • Simon Jäger
  • Simon Trenkle

Abstract

We study the descriptive and substantive representation of workers through worker representatives, focusing on the selection of German works council representatives and their impact on worker outcomes. Becoming a professional representative leads to substantial wage gains for the elected, concentrated among blue-collar workers. Representatives are positively selected in terms of pre-election earnings and person fixed effects. They are more likely to have undergone vocational training, show greater interest in politics, and lean left politically compared to the employees they represent; blue-collar workers are close to proportionally represented among works councilors. Drawing on a retirement-IV strategy and event-study designs around council elections, we find that blue-collar representatives reduce involuntary separations, consistent with blue-collar workers placing stronger emphasis on job security.

Suggested Citation

  • Julian Budde & Thomas Dohmen & Simon Jäger & Simon Trenkle, 2024. "Worker Representatives," CESifo Working Paper Series 11242, CESifo.
    • Handle: RePEc:ces:ceswps:_11242
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11242.pdf
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    Keywords

    worker representatives; works councils; linked administrative and survey data;
    All these keywords.

    JEL classification:

    • 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
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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