Arbeitspapier
Works Councils as Gatekeepers: Codetermination, Monitoring Practices, and Job Satisfaction
This paper analyzes the role of works councils as gatekeepers safeguarding employee's interests in the adoption of monitoring practices. We first introduce a formal model predicting that (i) the introduction of monitoring practices leads to a stronger increase (or weaker decrease) in job satisfaction when a works council is in place, (ii) that this effect should be larger the lower the prior level of employee participation and (iii) that works councils increase the likelihood of the implementation of monitoring practices at the level of individual employees. We provide evidence in line with these hypotheses using linked-employer-employee panel data from Germany. We indeed find that the adoption of formal performance appraisals and feedback interviews is associated with a significantly larger increase in job satisfaction when there is a works council. This pattern is driven by establishments without collective bargaining agreements. The evidence also suggests that works councils indeed facilitate the implementation of monitoring practices, as codetermined firms have a higher likelihood that a practice implemented on the firm level is actually applied by middle management.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 15956
- Classification
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Wirtschaft
Labor Standards: Workers' Rights
Safety; Job Satisfaction; Related Public Policy
- Subject
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works councils
codetermination
performance appraisal
feedback interview
job satisfaction
linked employer-employee data
- Event
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Geistige Schöpfung
- (who)
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Grund, Christian
Sliwka, Dirk
Titz, Krystina
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
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2023
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Grund, Christian
- Sliwka, Dirk
- Titz, Krystina
- Institute of Labor Economics (IZA)
Time of origin
- 2023
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The Impact of Wage Increases on Job Satisfaction: Empirical Evidence and Theoretical Implications
Reference dependent preferences and the impact of wage increases on job satisfaction: theory and evidence
On the Notion of Responsibility in Organizations
On the Hidden Costs of Incentive Schemes
Trust as a signal of a social norm and the hidden costs of incentive schemes
On the Hidden Costs of Incentive Schemes
Bonuses and performance evaluations
On the Use of Nonfinancial Performance Measures in Management Compensation
Management Incentives, Signaling Effects and the Costs of Vertical Integration