Let’s call it a day - The effect of works councils on working hours constraints in german establishments

Abstract

This study analyzes the impact of works councils on discrepancies between the preferred and actual working hours of employees. The results show that workers in codetermined establishments are more likely to match their working time preferences. This positive effect is due to a reduction of overemployment. However, the presence of works councils can also slightly increase the probability of employees working less than they would prefer. All effects are stronger for parents, especially for mothers, which confirms that works councils care for the compatibility of work and family life. Finally, the positive impact of works councils on working hours constraints can be explained by a lower probability of parents working overtime.