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Works councils, union bargaining and quits in German firms

Author

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  • Christian Pfeifer

    (Leuphana University Lueneburg, Germany, pfeifer@leuphana.de)

Abstract

Unsatisfied employees are likely to quit their current job if they have a better outside option. Worker codetermination and union bargaining might increase employees’ utility and make quits unnecessary. The article offers econometric evidence from a large-scale German establishment data set supporting the view that works councils, firm-level and industry-level union bargained collective agreements reduce the number of quits. Moreover, a strong interaction effect between both institutions exists. The results are robust for different subsamples and econometric methods.

Suggested Citation

  • Christian Pfeifer, 2011. "Works councils, union bargaining and quits in German firms," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(2), pages 243-260, May.
    • Handle: RePEc:sae:ecoind:v:32:y:2011:i:2:p:243-260
    DOI: 10.1177/0143831X10377806
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Uschi Backes-Gellner & Jens Mohrenweiser & Kerstin Pull, 2015. "The effectiveness of codetermination laws in cooperative and adversarial employment relations: When does regulation have bite?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 36(2), pages 215-238, May.
    2. Michael Oberfichtner, 2019. "Works council introductions in Germany: Do they reflect workers’ voice?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 40(2), pages 301-325, May.
    3. Verena Dill & Uwe Jirjahn, 2017. "Foreign owners and the quality of industrial relations in Germany," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(1), pages 5-25, February.
    4. 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.
    5. Christian Pfeifer, 2014. "Works councils and the management of human resources: Evidence from German establishment data," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 35(1), pages 143-163, February.
    6. Fackler, Daniel & Schnabel, Claus & Stegmaier, Jens, 2024. "Personnel adjustments during the Covid-19 pandemic: did co-determination make a difference?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-004.
    7. Laszlo Goerke & Sven A. Hartmann & Yue Huang, 2026. "Councils of Contentment: Works Councils and Income Perceptions," IAAEU Discussion Papers 202602, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    8. Harald Pfeifer, 2020. "Works councils and absenteeism of apprentices: An empirical analysis," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 41(3), pages 672-692, August.
    9. 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.
    10. Peter Ellguth & Hans-Dieter Gerner & Jens Stegmaier, 2014. "Wage effects of works councils and opening clauses: The German case," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 35(1), pages 95-113, February.
    11. Valentina Franca & Marko Pahor, 2014. "Influence of management attitudes on the implementation of employee participation," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 35(1), pages 115-142, February.

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