Do Unions and Works Councils Really Dampen the Gender Pay Gap? Discordant Evidence from Germany

18 Pages Posted: 10 Aug 2020

See all articles by Michael Oberfichtner

Michael Oberfichtner

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Marina Töpfer

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - School of Business & Economics

Abstract

Using a large employer-employee dataset, we provide new evidence on the relationship between the gender pay gap and industrial relations from within German workplaces. Controlling for unobserved workplace heterogeneity, we find no evidence that introducing or abandoning collective agreements or works councils affects the gender pay gap. This result holds at the mean and along the distribution, challenging the stylized fact that unions and works councils dampen the gender pay gap.

Keywords: gender pay gap, industrial relations, works council, collective bargaining, Germany

JEL Classification: J31, J50

Suggested Citation

Oberfichtner, Michael and Schnabel, Claus and Töpfer, Marina, Do Unions and Works Councils Really Dampen the Gender Pay Gap? Discordant Evidence from Germany. IZA Discussion Paper No. 13576, Available at SSRN: https://ssrn.com/abstract=3669505

Michael Oberfichtner (Contact Author)

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Schloßplatz 4
Erlangen, DE 91054
Germany

Claus Schnabel

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
Lange Gasse 20
D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Marina Töpfer

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - School of Business & Economics ( email )

Nuremburg
Germany

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