Separating Introduction Effects from Selectivity Effects:Â The Differences in Employment Patterns of Codetermined Firms
Rafael Gralla and
Kornelius Kraft
LABOUR, 2018, vol. 32, issue 1, 93-111
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.
Date: 2018
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https://doi.org/10.1111/labr.12121
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Working Paper: Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms (2012) 
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