2018
DOI: 10.1111/labr.12121
|View full text |Cite
|
Sign up to set email alerts
|

Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Codetermined Firms

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.

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

4
14
0

Year Published

2018
2018
2022
2022

Publication Types

Select...
4
1

Relationship

1
4

Authors

Journals

citations
Cited by 15 publications
(20 citation statements)
references
References 25 publications
(41 reference statements)
4
14
0
Order By: Relevance
“…Furthermore, plants covered by sector‐wide bargaining agreements (SBAs) feature the lowest rate of job reallocation (the sum of either job creation or job destruction). Similar results can be seen in Gralla and Kraft (), who analyse the effects of works councils on hires and dismissals and also control for collective bargaining in their regression analyses. The differences between plants covered by firm‐level contracts (FLC) and SBA are fairly small.…”
Section: Empirical Procedure Data and Descriptive Statisticssupporting
confidence: 83%
See 2 more Smart Citations
“…Furthermore, plants covered by sector‐wide bargaining agreements (SBAs) feature the lowest rate of job reallocation (the sum of either job creation or job destruction). Similar results can be seen in Gralla and Kraft (), who analyse the effects of works councils on hires and dismissals and also control for collective bargaining in their regression analyses. The differences between plants covered by firm‐level contracts (FLC) and SBA are fairly small.…”
Section: Empirical Procedure Data and Descriptive Statisticssupporting
confidence: 83%
“…Jirjahn () presents coefficients not significantly different from zero using OLS, and negative and marginally significant coefficients in a treatment effects model that controls for the endogeneity of works councils. Finally, Gralla and Kraft () present negative but mostly insignificant effects of collective agreements on firm‐level employment growth. They find significant effects on hires and dismissals, however.…”
Section: Related Literaturementioning
confidence: 96%
See 1 more Smart Citation
“… See Gralla and Kraft () for a more detailed discussion on codetermination rights of works councils with respect to hires and dismissals. …”
mentioning
confidence: 99%
“…Because we anticipate different effects for these two types of changes and because of the small panel dimension in our datasets, we estimate difference‐in‐differences (DiD) models (cf. Gralla and Kraft ; Grund and Schmitt ; and Kraft and Lang [] combining it with matching). Our estimation equation reads:F1false(Yitfalse)=β1+β2treatmentgroupi+β3false(nofalse)workcouncilit+boldXbolditγ+δyeart+εit…”
Section: Data and Empirical Specificationmentioning
confidence: 99%