Works councils, union bargaining and quits in German firms

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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.
Original languageEnglish
JournalEconomic and Industrial Democracy
Volume32
Issue number2
Pages (from-to)243-260
Number of pages18
ISSN0143-831X
DOIs
Publication statusPublished - 05.2011

    Research areas

  • Economics - codetermination, exit-voice, job satisfaction, union, voluntary turnover, works council

DOI