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Works Councils, Wages, and Job Satisfaction

  • Grund, Christian

    ()

    (RWTH Aachen University)

  • Schmitt, Andreas

    ()

    (RWTH Aachen University)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5464.

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Length: 29 pages
Date of creation: Jan 2011
Date of revision:
Publication status: published in: Applied Economics, 2013, 45 (3), 299-310
Handle: RePEc:iza:izadps:dp5464
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