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Works councils, union bargaining and quits in German firms

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Article

Pfeifer, Christian

Economic and Industrial Democracy

2011

32

2

May

243-260

codetermination ; collective bargaining ; job satisfaction ; trade union ; workers representation ; works council

Germany

Workers participation and European works councils

English

Bibliogr.

"Unsatisfied employees are likely to quit their current job if they have a better outside option. Worker codetermination and union bargaining might increase employees' utility and make quits unnecessary. The article offers econometric evidence from a large-scale German establishment data set supporting the view that works councils, firm-level and industry-level union bargained collective agreements reduce the number of quits. Moreover, a strong interaction effect between both institutions exists. The results are robust for different subsamples and econometric methods. "

Paper



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