Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Codetermined Firms
19 Pages Posted: 8 Feb 2018
Date Written: March 2018
Abstract
This study examines differences in employment growth between firms with and without works councils by separating introduction effects from potential selectivity effects. Using a difference‐in‐differences framework, we show that firms with works councils have higher employment growth before adopting a works council. However, employment growth declines after introduction. We identify the reason for lower employment growth in reduced hiring rates, while dismissal rates remain constant.
Suggested Citation: Suggested Citation
Gralla, Rafael and Kraft, Kornelius, Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Codetermined Firms (March 2018). LABOUR, Vol. 32, Issue 1, pp. 93-111, 2018, Available at SSRN: https://ssrn.com/abstract=3120082 or http://dx.doi.org/10.1111/labr.12121
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