Works Councils and Personnel Turnover
GEABA Discussion Paper No. 03-04
18 Pages Posted: 13 Feb 2004
Date Written: 2003
According to theoretical arguments and previous empirical studies, works councils reduce personnel turnover. This result is confirmed by an empirical examination of the NIFA-Panel containing information on the production area of German mechanical engineering plants. Futhermore the effects of the introduction or closure of a works council are considered for the first time. The same is true for different types of works councils. In particular, cooperative relations between management and works council foster a lower personnel turnover. Thus, this lowered turnover has to be in the common interest of employees and employers.
Keywords: Co-determination, Labour-Management Relations, Labour Turnover, Works Councils
JEL Classification: J53, J63, M51, M54, L64, C20
Suggested Citation: Suggested Citation