Welcome to the Chair of Econometrics

Our homepage offers you information about the teaching and research activities of the Chair of Econometrics.

The research focuses on microeconometrics, labor economics and econometrics of ultra-high frequent financial data.

We offer theoretical and applied econometrics and statistics courses for Bachelor, Master and doctoral students in economics and mathematical finance.

For more details please check the links at the top.

Seminar in Empirical Microeconomics - Worker Representatives

Thursday, 25. April 2024
12:00 - 13:15


Chair of Economic Policy

Simon Trenkle (IZA - Institute of Labor Economics)

Worker Representatives

(with Julian Budde, Thomas Dohmen, Simon Jäger)

Abstract: We study the selection of worker representatives, and their effect on worker outcomes. We focus on German works councilors – shop-floor representatives elected from the workforce. We paint a comprehensive picture of representatives’ characteristics spanning a period of more than forty years, combining rich administrative panel and representative survey data. Becoming a professional worker representative leads to substantial wage gains and increased employment security. Consistent with desirability of the role, worker representatives are positively selected in terms of earnings and person-fixed effects. They tend to have vocational training and are less likely to be untrained or have a university-level education. Representatives  show greater interest in politics and tend to lean left politically compared to the populations they represent.  Contrary to other domains of power where blue-collar workers are often underrepresented, we document that blue-collar workers have been close to proportionally represented among works councilors for the past four decades.  Drawing on a retirement IV strategy and event study designs around works council elections, we find that electing blue-collar representatives reduces involuntary layoffs. Our results support the hypothesis that blue-collar representatives place greater emphasis on job security, in line with stronger worries about layoffs and risk of unemployment faced by blue-collar workers.