Works councils, wages and job satisfaction
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.
Document Type: Research Article
Affiliations: University of Duisburg-Essen, Mercator School of Management, Lotharstraße 65D-47057Duisburg, Germany
Publication date: January 1, 2013