Arbeitspapier

Works councils and the anatomy of wages

This paper provides the first full examination of the effect of German works councils on wages using matched employer-employee data (specifically, the LIAB for 2001). We find that works councils are associated with higher earnings. The wage premium is around 11 percent (and is higher under collective bargaining). This result persists after taking account of worker and establishment heterogeneity and the endogeneity of works council presence. Next, using quantile regressions, we find that the works council premium is decreasing with the position of the worker in the wage distribution. And it is also higher for women than for men. Finally, the works council wage premium is associated with longer job tenure. This suggests that some of the premium is a noncompetitive rent, even if works council voice may dominate its distributive effects insofar as tenure is concerned.

Sprache
Englisch

Erschienen in
Series: ZEW Discussion Papers ; No. 06-086

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Thema
matched employer-employee data
rent seeking
tenure
wages
wage distribution
works councils

Ereignis
Geistige Schöpfung
(wer)
Addison, John T.
Teixeira, Paulino
Zwick, Thomas
Ereignis
Veröffentlichung
(wer)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(wo)
Mannheim
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Addison, John T.
  • Teixeira, Paulino
  • Zwick, Thomas
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Entstanden

  • 2006

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