Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250534 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14873
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using a unique dataset of establishments in Germany surveyed during the Covid-19 pandemic, this study investigates whether personnel adjustments during the crisis differed between establishments with and without a works council. Our regression analyses show that the hiring and dismissal rate as well as the churning rate were lower in establishments with a works council. In contrast, the net employment growth rate over the pandemic and the implementation of short-time work did not differ significantly between establishments with and without a works council. We conclude that worker co-determination did indeed make a difference in terms of higher employment stability for the incumbent workforce during the pandemic.
Subjects: 
personnel adjustments
co-determination
works councils
COVID-19
pandemic
JEL: 
J53
J63
M51
Document Type: 
Working Paper

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