IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Gender, Worker Representation and the Profitability of Firms in Germany

  • Uwe Jirjahn

Recent research has shown that the unexplained gender wage gap is smaller in establishments where a works council is present. The finding raises the question of whether establishment-level codetermination reduces gender wage discrimination or whether it reduces a wage differential that reflects productivity differences between men and women. This study addresses the question by examining the association between the share of female employees and profitability. Using data from manufacturing establishments, the empirical analysis suggests that there is a positive association between the share of women and profitability in establishments without a works council while there is no association in establishments with a works council. These results support the hypothesis that establishment-level codetermination reduces gender-specific wage discrimination.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2011-06.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2011-06.

as
in new window

Length: 20 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:trr:wpaper:201106
Contact details of provider: Postal:
B IV, VWL, D-54286 Trier

Phone: +49 (0) 651 201-2739
Fax: +49 (0) 651 201-3934
Web page: http://www.uni-trier.de/index.php?id=2118

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Smith, Stephen C., 1991. "On the economic rationale for codetermination law," Journal of Economic Behavior & Organization, Elsevier, vol. 16(3), pages 261-281, December.
  2. Prendergast, Canice & Topel, Robert H, 1996. "Favoritism in Organizations," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 958-78, October.
  3. Brookes, Mick & Hinks, Timothy & Watson, Duncan, 1999. "Comparisons in Gender Wage Differentials and Discrimination between Germany and the United Kingdom," IRISS Working Paper Series 1999-02, IRISS at CEPS/INSTEAD.
  4. Thomas Cornelissen & Uwe Jirjahn & Georgi Tsertsvadze, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationship," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 554-572, December.
  5. Edward P. Lazear & Paul Oyer, 2012. "Personnel Economics
    [The Handbook of Organizational Economics]
    ," Introductory Chapters, Princeton University Press.
  6. Rafael Lalive & Alois Stutzer, 2010. "Approval of equal rights and gender differences in well-being," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 933-962, June.
  7. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2009. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," IZA Discussion Papers 4502, Institute for the Study of Labor (IZA).
  8. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Working Papers 0116, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Nov 2010.
  9. Steffen Mueller, 2011. "Works Councils and Firm Profits Revisited," British Journal of Industrial Relations, London School of Economics, vol. 49(Supplemen), pages s27-s43, 06.
  10. John T. Addison & Paulino Teixeira & Thomas Zwick, 2008. "German Works Councils and the Anatomy of Wages," Working Paper Series 11_08, The Rimini Centre for Economic Analysis.
  11. Victor Maas & Raquel Torres-González, 2011. "Subjective Performance Evaluation and Gender Discrimination," Journal of Business Ethics, Springer, vol. 101(4), pages 667-681, July.
  12. Addison, John T. & Teixeira, Paulino & Zwick, Thomas, 2006. "Works Councils and the Anatomy of Wages," IZA Discussion Papers 2474, Institute for the Study of Labor (IZA).
  13. Fitzroy, Felix R & Kraft, Kornelius, 1987. "Efficiency and Internal Organization: Works Councils in West German Firms," Economica, London School of Economics and Political Science, vol. 54(216), pages 493-504, November.
  14. Booth, Alison L & Nolen, Patrick J, 2009. "Gender Differences in Risk Behaviour: Does Nurture Matter?," Economics Discussion Papers 2915, University of Essex, Department of Economics.
  15. Laffont, Jean-Jacques, 1990. "Analysis of Hidden Gaming in a Three-Level Hierarchy," Journal of Law, Economics and Organization, Oxford University Press, vol. 6(2), pages 301-24, Fall.
  16. Uwe Jirjahn, 2010. "Works councils and employment growth in German establishments," Cambridge Journal of Economics, Oxford University Press, vol. 34(3), pages 475-500.
  17. Dohmen Thomas & Falk Armin & Huffman David & Sunde Uwe & Schupp Jürgen & Wagner Gert G., 2009. "Individual Risk Attitudes: Measurement, Determinants and Behavioral Consequences," Research Memorandum 039, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  18. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1998. "Market Forces and Sex Discrimination," Labor and Demography 9807002, EconWPA.
  19. Baker, George P & Jensen, Michael C & Murphy, Kevin J, 1988. " Compensation and Incentives: Practice vs. Theory," Journal of Finance, American Finance Association, vol. 43(3), pages 593-616, July.
  20. Uri Gneezy & Kenneth L. Leonard & John A. List, 2008. "Gender Differences in Competition: Evidence from a Matrilineal and a Patriarchal Society," NBER Working Papers 13727, National Bureau of Economic Research, Inc.
  21. Uwe Jirjahn & Gesine Stephan, 2004. "Gender, piece rates and wages: evidence from matched employer--employee data," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 683-704, September.
  22. Margit Osterloh & Bruno Frey, 2006. "Shareholders Should Welcome Knowledge Workers as Directors," Journal of Management and Governance, Springer, vol. 10(3), pages 325-345, September.
  23. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2005. "Do Works Councils Inhibit Investment?," IZA Discussion Papers 1473, Institute for the Study of Labor (IZA).
  24. John S. Heywood & Uwe Jirjahn, 2002. "Payment Schemes and Gender in Germany," ILR Review, Cornell University, ILR School, vol. 56(1), pages 44-64, October.
  25. Uwe Jirjahn & Kornelius Kraft, 2007. "Intra-firm Wage Dispersion and Firm Performance - Is There a Uniform Relationship?," Kyklos, Wiley Blackwell, vol. 60(2), pages 231-253, 05.
  26. Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away From Competition? Do Men Compete Too Much?," NBER Working Papers 11474, National Bureau of Economic Research, Inc.
  27. repec:nsr:niesrd:341 is not listed on IDEAS
  28. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
  29. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA).
  30. Bernd Frick, 2008. "Betriebliche Mitbestimmung unter Rechtfertigungsdruck: Die relative Bedeutung von Produktivitaets- und Umverteilungseffekten," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 15(2), pages 164 - 177.
  31. Aldo Rustichini & Uri Gneezy, 2004. "Gender and competition at a young age," Framed Field Experiments 00151, The Field Experiments Website.
  32. Black, B & Trainor, M & Spencer, J E, 1999. "Wage Protection Systems, Segregation and Gender Pay Inequalities: West Germany, the Netherlands and Great Britain," Cambridge Journal of Economics, Oxford University Press, vol. 23(4), pages 449-64, July.
  33. Anja Heinze & Elke Wolf, 2010. "The intra-firm gender wage gap: a new view on wage differentials based on linked employer–employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 851-879, June.
  34. Jirjahn, Uwe & Kraft, Kornelius, 2008. "Teamwork and Intra-Firm Wage Dispersion among Blue-Collar Workers," IZA Discussion Papers 3291, Institute for the Study of Labor (IZA).
  35. Jens Mohrenweiser & Paul Marginson & Uschi Backes-Gellner, 2009. "What Triggers the Establishment of a Works Council?," Working Papers 0101, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2010.
  36. Hübler, Olaf & Meyer, Wolfgang, 2000. "Industrial Relations and the Wage Differentials between Skilled and Unskilled Blue-Collar Workers within Establishments: An Empirical Analysis with Data of Manufacturing Firms," IZA Discussion Papers 176, Institute for the Study of Labor (IZA).
  37. Le, Anh T. & Miller, Paul W. & Slutske, Wendy S. & Martin, Nicholas G., 2010. "Attitudes towards Economic Risk and the Gender Pay Gap," IZA Discussion Papers 5393, Institute for the Study of Labor (IZA).
  38. Mohrenweiser, Jens & Zwick, Thomas, 2008. "Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," ZEW Discussion Papers 08-019, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  39. Edward P. Lazear, 1995. "Personnel Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121883, December.
  40. Uwe Jirjahn, 2009. "The Introduction of Works Councils in German Establishments - Rent Seeking or Rent Protection?," British Journal of Industrial Relations, London School of Economics, vol. 47(3), pages 521-545, 09.
  41. repec:esx:essedp:672 is not listed on IDEAS
  42. Askildsen, Jan Erik & Jirjahn, Uwe & Smith, Stephen C., 2006. "Works councils and environmental investment: Theory and evidence from German panel data," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 346-372, July.
  43. John S. Heywood & W. Stanley Siebert & Xiangdong Wei, 2007. "The implicit wage costs of family friendly work practices," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 275-300, April.
  44. Steffen Mueller, 2009. "The Productivity Effect of Non-Union Representation," Working Papers 074, Bavarian Graduate Program in Economics (BGPE).
  45. Uwe Jirjahn & Kornelius Kraft, 2011. "Do Spillovers Stimulate Incremental or Drastic Product Innovations? Evidence from German Establishment Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(4), pages 509-538, 08.
  46. Gartner, Hermann & Stephan, Gesine, 2004. "How collective contracts and works councils reduce the gender wage gap," IAB Discussion Paper 200407, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  47. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-68, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:trr:wpaper:201106. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthias Neuenkirch)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.