Is tax compliance driven only by extrinsic motivations such as deterrence and tax policy or is there also a role for intrinsic motivations such as morals, norms and psychology? Agents may comply based on moral sentiments, social norms, guilt and shame (Andreoni et al. 1998), all of which are...

Using both household and linked-employer-employee data we study the effects of works councils on individual sickness absence rates and a subjective measure of personnel problems due to absenteeism in Germany. We find that the existence of a works council is positively correlated with the...