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Works councils, wages and job satisfaction

Author

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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.

Suggested Citation

  • 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:v:45:y:2013:i:3:p:299-310
    DOI: 10.1080/00036846.2011.597735
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    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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