Works Councils, Wages, and Job Satisfaction

29 Pages Posted: 7 Feb 2011

See all articles by Christian Grund

Christian Grund

RWTH Aachen University - School of Economics and Business Administration; IZA Institute of Labor Economics

Andreas Schmitt

RWTH Aachen University

Date Written: January 1, 2011

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.

Keywords: Job Satisfaction, Wages, Works Councils

JEL Classification: M5, J30, J53

Suggested Citation

Grund, Christian and Schmitt, Andreas, Works Councils, Wages, and Job Satisfaction (January 1, 2011). IZA Discussion Paper No. 5464. Available at SSRN: https://ssrn.com/abstract=1756002

Christian Grund (Contact Author)

RWTH Aachen University - School of Economics and Business Administration ( email )

Aachen
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Andreas Schmitt

RWTH Aachen University ( email )

Register to save articles to
your library

Register

Paper statistics

Downloads
78
Abstract Views
996
rank
316,955
PlumX Metrics