Worker Representatives

Type

Article
Abstract

We study the representation of workers through professional worker representatives, focusing on the selection of German works council representatives and their impact on worker outcomes. We examine differences in the effects of blue- and white-collar representatives, motivated by the observation that blue- and white-collar workers exhibit different preferences, e.g., concerning job security. Using retirement-IV and event-study designs, we find that electing blue-collar representatives significantly reduces involuntary separations, consistent with their stronger emphasis on job security compared to their white-collar counterparts, and has no effect on the wages of the represented. We further show that becoming a professional representative leads to substantial wage gains for blue-collar workers. Both blue- and white-collar representatives are positively selected in terms of pre-election earnings and person fixed effects. In terms of descriptive representation, we document that blue-collar workers are close to proportionally represented among works council representatives, in contrast to representation of blue-collar workers in other domains.

Publication Status
Working Papers
Documents