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Works Councils and Separations: Voice, Monopoly, and Insurance Effects

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Author Info
Boris Hirsch
Thorsten Schank
Claus Schnabel

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Abstract

Using a large linked employer-employee data set for Germany, we find that the existence of a works council is associated with a lower separation rate to employment, in particular for men and workers with low tenure. While works council monopoly effects show up in all specifications, clear voice effects are only visible for low tenured workers. Works councils also reduce separations to non-employment, and this impact is more pronounced for men. Insurance effects only show up for workers with tenure of more than one year. Our results indicate that works councils primarily represent the interests of a specific clientele.

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File URL: http://www.bgpe.de/texte/DP/075_hirsch.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 075.

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Length: 27 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:bav:wpaper:075_hirsch

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Web page: http://www.bgpe.de/
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Related research
Keywords: works council; separations; collective voice; duration models; Germany;

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Find related papers by JEL classification:
J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

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  1. John T. Addison & Paulino Teixeira & Thomas Zwick, 2007. "German Works Councils and The Anatomy of Wages," Working Paper Series 13-07, Rimini Centre for Economic Analysis, revised Jul 2007. [Downloadable!]
    Other versions:
  2. John T. Addison & Clive R. Belfield, 2004. "Union Voice," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 563-596, October. [Downloadable!] (restricted)
    Other versions:
  3. Olaf H¸bler & Uwe Jirjahn, 2003. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(4), pages 471-491, 09. [Downloadable!] (restricted)
    Other versions:
  4. John T. Addison & Paulino Teixeira, 2005. "The Effect of Works Councils on Employment Change," GEMF Working Papers 2005-06, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
  5. Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, . "Foreign-owned Plants and Job Security," Discussion Papers 07/36, University of Nottingham, GEP. [Downloadable!]
  6. Abbring, Jaap H & van den Berg, Gerard J, 2007. "The Unobserved Heterogeneity Distribution in Duration Analysis," CEPR Discussion Papers 6219, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(2), pages 255-281, 06. [Downloadable!] (restricted)
    Other versions:
  8. Kornelius Kraft, 2006. "On Estimating the Effect of Co-Determination on Personnel Turnover," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(2), pages 287-305.
  9. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2008. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Working Papers 1111, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  10. John T. Addison & Lutz Bellmann & Arnd Kölling, 2004. "Works Councils and Plant Closings in Germany," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(1), pages 125-148, 03. [Downloadable!] (restricted)
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