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Work councils and separations: voice, monopoly, and insurance effects

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Author Info
Hirsch, Boris
Schank, Thorsten
Schnabel, Claus

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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. ; Unter Verwendung eines großen kombinierten Firmen-Beschäftigten-Datensatzes für Deutschland finden wir, dass die Existenz eines Betriebsrates mit einer geringeren Abgangsrate in (anderweitige) Beschäftigung einhergeht, dies insbesondere bei männlichen Arbeitnehmern und solchen mit geringen Betriebszugehörigkeitsdauern. Während es anzeichen für Monopoleeffekte eines Betriebsrates in allen empirischen Spezifikationen gibt, sind eindeutige Voiceeffekte lediglich für Beschäftige mit geringen Betriebszugehörigkeitsdauern erkennbar. Ein weiteres Ergebnis ist, dass bei Vorhandensein eines Betriebsrates auch die Abgangsrate in Nichtbeschäftigung abnimmt, wobei dieser Effekt abermals bei männlichen Beschäftigten ausgeprägter ist. Diese Versicherungseffekte eines Betriebsrates treten jedoch nur für Arbeitnehmer mit Betriebszugehörigkeitsdauern von über einem Jahr auf. Unsere Ergebnisse deuten darauf hin, dass Betriebsräte in erster Linie die Interessen einer spezifischen Klientel vertreten. --

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Publisher Info
Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 62.

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Date of creation: 2009
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Handle: RePEc:zbw:faulre:62

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Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english/mainindex.htm

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Related research
Keywords: works council; separations; collective voice; duration models; Germany;

Other versions of this item:

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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References listed on IDEAS
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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. Martyn Andrews & Lutz Bellmann & Thorsten Schank & Richard Upward, . "Foreign-owned Plants and Job Security," Discussion Papers 07/36, University of Nottingham, GEP. [Downloadable!]
  3. 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:
  4. 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:
  5. 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.
  6. 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!]
  7. 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)
  8. John T. Addison & Clive R. Belfield, 2004. "Union Voice," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 563-596, October. [Downloadable!] (restricted)
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  9. 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:
  10. 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!]
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