Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms

Rafael Gralla () and Kornelius Kraft
Additional contact information
Rafael Gralla: TU Dortmund

No 7022, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 establishing a works council. However, employment growth declines after introduction. We identify the reason for lower employment growth in reduced hiring rates but constant dismissal rates.

Keywords: employment growth; dismissals; hires; works councils; difference-in-differences (search for similar items in EconPapers)
JEL-codes: C23 J53 J63 M54 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-11
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Labour, 2018, 32 (1), 93-111

Downloads: (external link)
https://docs.iza.org/dp7022.pdf (application/pdf)

Related works:
Journal Article: Separating Introduction Effects from Selectivity Effects:Â The Differences in Employment Patterns of Codetermined Firms (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp7022

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().