Works Councils, Quits and Dismissals in Germany

Christian Grund and Andreas Schmitt ()
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Andreas Schmitt: RWTH Aachen University

No 7361, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the relationship between works councils and two different types of employment separation: dismissals by the firm and voluntary quits by employees. Based on representative data from the German Socio-Economic Panel, we find a negative relationship between works councils and both kinds of separation. This is particularly true for skilled blue collar as well as qualified white collar workers compared to employees in other job categories. Additionally, we find first hints for a positive relation between works councils and the relevance of severance payments in the case of dismissals.

Keywords: severance pay; quit; employment separation; dismissal; works council (search for similar items in EconPapers)
JEL-codes: J6 M5 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-04
New Economics Papers: this item is included in nep-eur, nep-hrm, nep-lab and nep-lma
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Published - revised version published in: German Journal of Human Resource Management, 2016, 30, 53-75, together with Johannes Martin as an additional co-author

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