Using representative German employee data, we analyse the role of works councils for the incidence of severance payments subsequent to dismissals. While there is a positive relation with severance payments after those dismissals which stem from plant closings, the incidence of a works council is negatively associated with severance pay subsequent to individual layoffs. In both cases, we find a negative moderating effect of individuals’ higher re-employment chances. We also explore gender differences and differences between the types of previously held jobs.
Topics: Labor and employment
JEL-Classification: J53;J63;J65
Keywords: Dismissals, Layoffs, Plant closings, Severance pay, Works councils
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/162587