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<p>Using data from the German Socio-Economic Panel, we provide a comprehensive investigation of the relationship between workplace co-determination in the form of works councils and income satisfaction. Controlling for a wide range of individual, job-related, and firm-level characteristics in OLS and fixed effects specifications, we observe that employees working in establishments with a works council report significantly higher income satisfaction compared to their counterparts in non-co-determined firms. Rank in the income distribution, perceived fairness of the wage, and working conditions emerge as quantitatively relevant factors in explaining the positive correlation.</p>

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Councils of contentment: works councils and income perceptions

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年6月18日

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  • Laszlo Goerke,
  • Sven A. Hartmann,
  • Yue Huang

摘要

Using data from the German Socio-Economic Panel, we provide a comprehensive investigation of the relationship between workplace co-determination in the form of works councils and income satisfaction. Controlling for a wide range of individual, job-related, and firm-level characteristics in OLS and fixed effects specifications, we observe that employees working in establishments with a works council report significantly higher income satisfaction compared to their counterparts in non-co-determined firms. Rank in the income distribution, perceived fairness of the wage, and working conditions emerge as quantitatively relevant factors in explaining the positive correlation.