The Role of Works Councils for Severance Payments

Christian Grund and Johannes Martin

No 913, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: Using representative German employee data, we analyse the role of works councils for the incidence of severance payments subsequent to dismissals. While there is a positive relation with severance payments after those dismissals which stem from plant closings, the incidence of a works council is negatively associated with severance pay subsequent to individual layoffs. In both cases, we find a negative moderating effect of individuals’ higher re-employment chances. We also explore gender differences and differences between the types of previously held jobs.

Keywords: Dismissals; Layoffs; Plant closings; Severance pay; Works councils (search for similar items in EconPapers)
JEL-codes: J53 J63 J65 (search for similar items in EconPapers)
Pages: 20 p.
Date: 2017
New Economics Papers: this item is included in nep-dem, nep-eur and nep-hrm
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https://www.diw.de/documents/publikationen/73/diw_01.c.559809.de/diw_sp0913.pdf (application/pdf)

Related works:
Working Paper: The Role of Works Councils for Severance Payments (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp913

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