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

Dilger, Alexander, Works Councils and Personnel Turnover (2003). GEABA Discussion Paper No. 03-04, Available at SSRN: or

Alexander Dilger (Contact Author)

University of Münster ( email )

Institute for Organisational Economics
Scharnhorststr. 100
Münster, D-48151
+49-251-83-25330 (Phone)
+49-251-83-28429 (Fax)


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