Publikationen des DIW Berlin



913 The Role of Works Councils for Severance Payments Christian Grund, Johannes Martin 2017 20 S.

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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.




Dismissals, Layoffs, Plant closings, Severance pay, Works councils