EconPapers    
Economics at your fingertips  
 

The impact of works council membership on wages in Germany: a case of strategic discrimination?

Clément Brébion

PSE Working Papers from HAL

Abstract: This paper provides new insight into the quality of cooperation between employers and workers in Germany by estimating the impact of works council membership on wages between 2001 and 2015. It falls within a stream of research on collective organisations that has shifted focus away from the perspective of covered firms and their average worker to concentrate on the actors leading the negotiations. To my knowledge, this is the first economic analysis of a non-unionised form of representation to adopt this orientation. The main model of identification is an OLS with time and individual fixed effects conducted on a subsample of the German Socio-Economic Panel. I find that for individuals switching status without changing firm, being a works councilor increases the hourly gross wage by 4.5% in the manufacturing sector, while a penalty of 4% is evidenced in the service sector. I present several types of evidence showing that the impact is causal. Finally, I show that politically active representatives receive most of the (negative or positive) premium. Turning back to the context, I explain why this is likely to reflect a strategic behaviour of employers and a decline in the quality of cooperation in the country.

Date: 2020-01
New Economics Papers: this item is included in nep-eur
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02436686
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-02436686/document (application/pdf)

Related works:
Working Paper: The impact of works council membership on wages in Germany: a case of strategic discrimination? (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-02436686

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2022-08-09
Handle: RePEc:hal:psewpa:halshs-02436686