The Causes and Consequences of Adopting a Works Council

Kornelius Kraft · Julia Lang

46 citations0/0 files storedJahrbücher für Nationalökonomie und Statistik

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Labor Movements and Unions Labor market dynamics and wage inequality Employment, Labor, and Gender Studies

Abstract

Summary This paper reports on the results of a study on the determinants of the introduction of a works council and its consequences. We consider the effects of expectations concerning the economic conditions of a firm on the probability of adopting a works council. This is done, on the one hand, by use of employees' expectations on employment security and, on the other hand, by including forecasts of the management concerning employment growth and business conditions. Secondly, the effects of the introduction of works councils on wages and overtime working are investigated. Works councils are introduced when employees are concerned about job security. After the introduction of a works council the concerns about job security are less pronounced.

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References

2001Econometric Analysis of Cross Section and Panel Data 1951SOME THOUGHTS ON THE DISTRIBUTION OF EARNINGS 1 2008Job security and job protection 2003Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages 2001Works councils in Germany: their effects on establishment performance 2004The Course of Research into the Economic Consequences of German Works Councils 1987Effciency and Internal Organization: Works Councils in West German Firms 2003German Works Councils Old and New: Incidence, Coverage and Determinants

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