Arbeitspapier

Works councils and employer attitudes toward the incentive effects of HRM practices

A growing number of econometric examinations show that works councils substantially shape the personnel policy of firms in Germany. Firms with works councils make greater use of various HRM practices. This gives rise to the question of whether employers view the shaping of personnel policy positively or negatively. Using data from manufacturing establishments, this study finds that the incidence of a works council increases the probability that the employer has positive attitudes toward the incentive effects of performance pay, profit sharing, promotions, further training, and worker involvement in decision-making. It decreases the probability of a positive attitude toward the incentive effects of a high-wage policy. The pattern of results also holds when accounting for the issue of endogeneity by applying a recursive multivariate probit model. The results suggest that works councils play a redistribution role in wages and a trust-building role in the other HRM practices.

Sprache
Englisch

Erschienen in
Series: Research Papers in Economics ; No. 7/16

Klassifikation
Wirtschaft
Compensation Packages; Payment Methods
Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Personnel Economics: Compensation and Compensation Methods and Their Effects
Personnel Economics: Training
Thema
non-union worker representation
management attitude
further training
performance pay
profit sharing
promotions
employee involvement
high wages
recursive multivariate probit model

Ereignis
Geistige Schöpfung
(wer)
Jirjahn, Uwe
Ereignis
Veröffentlichung
(wer)
Universität Trier, Fachbereich IV – Volkswirtschaftslehre
(wo)
Trier
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Jirjahn, Uwe
  • Universität Trier, Fachbereich IV – Volkswirtschaftslehre

Entstanden

  • 2016

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