Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69371 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 7022
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
works councils
hires
dismissals
employment growth
difference-in-differences
JEL: 
J53
J63
C23
M54
Document Type: 
Working Paper

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