The Role of Works Councils for Severance Payments

Christian Grund and Johannes Martin

No 10750, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 reemployment 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: 22 pages
Date: 2017-04
New Economics Papers: this item is included in nep-dem, nep-eur and nep-hrm
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Published - published in: International Journal of Human Resource Management, 2021, 32, 871-892.

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Working Paper: The Role of Works Councils for Severance Payments (2017)
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