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Works councils, wages and job satisfaction

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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.

Keywords: J28; J31; J53; M12; M50; job satisfaction; wages; works constitution act; works councils

Document Type: Research Article


Affiliations: University of Duisburg-Essen, Mercator School of Management, Lotharstra├če 65D-47057Duisburg, Germany

Publication date: 2013-01-01

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