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Works Councils and Fixed-Term Employment: Evidence from West German Establishments

Works Councils and Fixed-Term Employment: Evidence from West German Establishments
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Year:    2003

Author:    Boockmann, Bernhard, Hagen, Tobias

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 3 : pp. 359–381

Abstract

Works councils and employees represented by them have diverse interests with regard to the use of fixed-term contracts. On the one hand, these contracts may be a threat to the position of permanent workers. On the other, the use of atypical work in the establishment could also increase permanent workers' job security, as suggested by dual labour market theory. Our empirical results reflect this ambiguity. While the existence of a works council influences the likelihood of employing fixed-term workers positively, it is negatively associated with their share in total employment in establishments using fixed-term labour. Empirical analysis of worker flows suggests that this effect is due to differences in the number of fixed-term workers, rather than differences in the duration of contracts.

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/schm.123.3.359

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 3 : pp. 359–381

Published online:    2003-03

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    23

Author Details

Boockmann, Bernhard

Hagen, Tobias

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Section Title Page Action Price
Boockmann / Hagen: Works Councils and Fixed-Term Employment: Evidence from West German Establishments 359
Abstract 359
Zusammenfassung 359
1. lntroduction 360
2. The impact of works councils on the use of fixed-term contracts 361
2.1 The direct effect: representation of worker interests 362
2.2 The indirect effect: substitution of permanent by fixed-term labour 364
3. Data set and descriptive statistics 365
4. The demand for labour on fixed-term contracts: empirical analysis 368
4.1 Specification and hypotheses 368
4.2 Estimation results 370
5. The effect of works councils on the flow of FTC workers 375
6. Conclusions 378
References 379