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Works Councils, Quits and Dismissals in Germany

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  • Grund, Christian

    (RWTH Aachen University)

  • Schmitt, Andreas

    (RWTH Aachen University)

Abstract

We examine the relationship between works councils and two different types of employment separation: dismissals by the firm and voluntary quits by employees. Based on representative data from the German Socio-Economic Panel, we find a negative relationship between works councils and both kinds of separation. This is particularly true for skilled blue collar as well as qualified white collar workers compared to employees in other job categories. Additionally, we find first hints for a positive relation between works councils and the relevance of severance payments in the case of dismissals.

Suggested Citation

  • Grund, Christian & Schmitt, Andreas, 2013. "Works Councils, Quits and Dismissals in Germany," IZA Discussion Papers 7361, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7361
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    References listed on IDEAS

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    More about this item

    Keywords

    severance pay; quit; employment separation; dismissal; works council;
    All these keywords.

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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