Works Councils and Workplace Health Promotion in Germany

52 Pages Posted: 21 May 2019

See all articles by Uwe Jirjahn

Uwe Jirjahn

University of Trier - Faculty of Economics

Jens Mohrenweiser

Bournemouth University

Stephen C. Smith

George Washington University - Department of Economics

Abstract

From a theoretical viewpoint, there can be market failures resulting in an underprovision of occupational health and safety. Works councils may help mitigate these failures. Using establishment data from Germany, our empirical analysis confirms that the incidence of a works council is significantly associated with an increased likelihood that the establishment provides more workplace health promotion than required by law. This result also holds in a recursive bivariate probit regression accounting for the possible endogeneity of works council incidence.Furthermore, analyzing potentially moderating factors such as collective bargaining coverage, industry, type of ownership, multi-establishment status and product market competition, we find a positive association between works councils and workplace health promotion for the various types of establishments examined. Finally, we go beyond the mere incidence of workplace health promotion and show that works councils are positively associated with a series of different measures of workplace health promotion.

Keywords: non-union employee representation, works council, occupational health and safety, workplace health promotion

JEL Classification: I18, J28, J50, J81

Suggested Citation

Jirjahn, Uwe and Mohrenweiser, Jens and Smith, Stephen C., Works Councils and Workplace Health Promotion in Germany. IZA Discussion Paper No. 12113, Available at SSRN: https://ssrn.com/abstract=3390101

Uwe Jirjahn (Contact Author)

University of Trier - Faculty of Economics ( email )

Trier, 54286
Germany

Jens Mohrenweiser

Bournemouth University ( email )

Fern Barrow
Poole BH12 5BB, Dorset BH8 8EB
United Kingdom

Stephen C. Smith

George Washington University - Department of Economics ( email )

2115 G Street NW
306 Monroe Hall
Washington, DC 20052
United States

HOME PAGE: http://https://www2.gwu.edu/~iiep/about/faculty/ssmith/

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