Works Councils, Quits and Dismissals in Germany

22 Pages Posted: 11 May 2013

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

Abstract

We examine the relationship between works councils and two different types of employment separation: dismissals by the firm and voluntary quits by employees. Based on representative data from the German Socio-Economic Panel, we find a negative relationship between works councils and both kinds of separation. This is particularly true for skilled blue collar as well as qualified white collar workers compared to employees in other job categories. Additionally, we find first hints for a positive relation between works councils and the relevance of severance payments in the case of dismissals.

Keywords: dismissal, employment separation, quit, severance pay, works council

JEL Classification: M5, J6

Suggested Citation

Grund, Christian and Schmitt, Andreas, Works Councils, Quits and Dismissals in Germany. IZA Discussion Paper No. 7361. Available at SSRN: https://ssrn.com/abstract=2263597

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 )

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