Minority representation at work

Arbeitspapier

Recent proposals for a more inclusive capitalism call for labor and minority representation in corporate governance. We examine the joint promise of labor and minority representation in the context of German works councils. The councils are a powerful form of labor representation that grants elected delegates of shop-floor workers codetermination rights (e.g., over work conditions). Since 2001, a quota ensures that elected delegates include delegates of the minority gender in the workforce. Using detailed survey and administrative data, we find that required minority representation helps the representation of the minority gender on works councils, elevates the effort of works councils, and boosts job satisfaction and well-being of workers, irrespective of their gender. At the establishment level, we find that required minority representation reduces worker turnover and increases investment and productivity. Our findings suggest that laws ensuring labor and minority representation in corporate governance can work (i.e., benefit workers without necessarily hurting employers). The seemingly beneficial impact of the laws suggests that frictions hamper the representation of minorities and cooperation among workers and employers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: New Working Paper Series ; No. 343

Classification and Topics

• Classification: Wirtschaft ; Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination ; Economics of Gender; Non-labor Discrimination ; Safety; Job Satisfaction; Related Public Policy ; Labor-Management Relations; Industrial Jurisprudence ; Producer Cooperatives; Labor Managed Firms; Employee Ownership ; Labor Turnover; Vacancies; Layoffs ; Labor Discrimination ; Labor Standards: Working Conditions ; Labor Standards: Labor Force Composition ; Labor Standards: Workers' Rights ; Business and Securities Law ; Labor Law ; Personnel Management; Executives; Executive Compensation ; Corporate Culture; Diversity; Social Responsibility ; Personnel Economics: General ; Personnel Economics: Labor Management ; Capitalist Systems: Political Economy
• Subject: Corporate Governance ; Labor Representation ; Gender Quota ; Job Satisfaction

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Breuer, Matthias ; Cai, Wei ; Le, Anthony ; Vetter, Felix
• Event: Veröffentlichung
• (who): University of Chicago Booth School of Business, Stigler Center for the Study of the Economy and the State
• (where): Chicago, IL
• (when): 2024

Further information

• Last update: 10.03.2025, 11:42 AM CET