{"abstract":[{"text":"We analyse how co-determination is related to non-compliance with the German minimum wage, which was introduced in 2015. The Works Constitution Act (WCA), the law regulating co-determination at the plant level, provides works councils with indirect means to ensure compliance with the statutory minimum wage. Based on this legal situation, our theoretical model predicts that non-compliance is less likely in co-determined firms because works councils enhance the enforcement of the law. The economic correlates of co-determination, such as higher productivity and wages, affect non-compliance in opposite directions. The empirical analysis, using data from the German Socio-economic Panel (SOEP) for the years 2016 and 2019, demonstrates that non-compliance occurs less often for employees in co-determined establishments, while there is no correlation between non-compliance and the difference between the minimum wage and the wage actually paid.             ","lang":"eng"}],"publication_identifier":{"issn":["0929-1261"],"eissn":["1572-9990"]},"type":"journal_article","main_file_link":[{"open_access":"1"}],"language":[{"iso":"eng"}],"date_updated":"2024-09-24T08:52:45Z","author":[{"first_name":"Laszlo","last_name":"Goerke","full_name":"Goerke, Laszlo"},{"id":"201086","first_name":"Markus","last_name":"Pannenberg","full_name":"Pannenberg, Markus"}],"publisher":"Springer Science and Business Media LLC","jel":["J33","K31","J53"],"oa":"1","quality_controlled":"1","doi":"10.1007/s10657-024-09811-1","citation":{"ama":"Goerke L, Pannenberg M. Minimum wage non-compliance: the role of co-determination. <i>European Journal of Law and Economics</i>. 2024. doi:<a href=\"https://doi.org/10.1007/s10657-024-09811-1\">10.1007/s10657-024-09811-1</a>","mla":"Goerke, Laszlo, and Markus Pannenberg. “Minimum Wage Non-Compliance: The Role of Co-Determination.” <i>European Journal of Law and Economics</i>, Springer Science and Business Media LLC, 2024, doi:<a href=\"https://doi.org/10.1007/s10657-024-09811-1\">10.1007/s10657-024-09811-1</a>.","bibtex":"@article{Goerke_Pannenberg_2024, title={Minimum wage non-compliance: the role of co-determination}, DOI={<a href=\"https://doi.org/10.1007/s10657-024-09811-1\">10.1007/s10657-024-09811-1</a>}, journal={European Journal of Law and Economics}, publisher={Springer Science and Business Media LLC}, author={Goerke, Laszlo and Pannenberg, Markus}, year={2024} }","alphadin":"<span style=\"font-variant:small-caps;\">Goerke, Laszlo</span> ; <span style=\"font-variant:small-caps;\">Pannenberg, Markus</span>: Minimum wage non-compliance: the role of co-determination. In: <i>European Journal of Law and Economics</i>, Springer Science and Business Media LLC (2024)","short":"L. Goerke, M. Pannenberg, European Journal of Law and Economics (2024).","apa":"Goerke, L., &#38; Pannenberg, M. (2024). Minimum wage non-compliance: the role of co-determination. <i>European Journal of Law and Economics</i>. <a href=\"https://doi.org/10.1007/s10657-024-09811-1\">https://doi.org/10.1007/s10657-024-09811-1</a>","chicago":"Goerke, Laszlo, and Markus Pannenberg. “Minimum Wage Non-Compliance: The Role of Co-Determination.” <i>European Journal of Law and Economics</i>, 2024. <a href=\"https://doi.org/10.1007/s10657-024-09811-1\">https://doi.org/10.1007/s10657-024-09811-1</a>.","ieee":"L. Goerke and M. Pannenberg, “Minimum wage non-compliance: the role of co-determination,” <i>European Journal of Law and Economics</i>, 2024."},"user_id":"220548","publication":"European Journal of Law and Economics","date_created":"2024-09-17T16:56:23Z","title":"Minimum wage non-compliance: the role of co-determination","status":"public","article_type":"original","_id":"4943","year":"2024","publication_status":"published","tmp":{"short":"CC BY (4.0)","image":"/images/cc_by.png","name":"Creative Commons Attribution 4.0 International Public License (CC-BY 4.0)","legal_code_url":"https://creativecommons.org/licenses/by/4.0/legalcode"}}