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Personnel adjustments during the Covid-19 pandemic: Did co-determination make a difference?

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  • Fackler, Daniel
  • Schnabel, Claus
  • Stegmaier, Jens

Abstract

Using a unique dataset of establishments in Germany surveyed during the Covid-19 pandemic, this study investigates whether personnel adjustments during the crisis differed between establishments with and without a works council. Our regression analyses show that the hiring and dismissal rate as well as the churning rate were lower in establishments with a works council. In contrast, the net employment growth rate over the pandemic and the implementation of short-time work did not differ significantly between establishments with and without a works council. We conclude that worker co-determination did indeed make a difference in terms of higher employment stability for the incumbent workforce during the pandemic.

Suggested Citation

  • Fackler, Daniel & Schnabel, Claus & Stegmaier, Jens, 2021. "Personnel adjustments during the Covid-19 pandemic: Did co-determination make a difference?," FAU Discussion Papers in Economics 07/2021, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    • Handle: RePEc:zbw:iwqwdp:072021
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    References listed on IDEAS

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    Cited by:

    1. Braakmann, Nils & Hirsch, Boris, 2023. "Unions as Insurance: Employer–Worker Risk Sharing and Workers' Outcomes during COVID-19," IZA Discussion Papers 15893, Institute of Labor Economics (IZA).
    2. Bellmann, Lisa & Bellmann, Lutz & Hübler, Olaf, 2023. "Labour Mobility in German Establishments during the COVID-19 Crisis: Panel Data Analyses with Special Reference to Short-Time Work and Working from Home," IZA Discussion Papers 15935, Institute of Labor Economics (IZA).
    3. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).

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    More about this item

    Keywords

    works councils; co-determination; personnel adjustments; Covid-19 pandemic;
    All these keywords.

    JEL classification:

    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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