@TechReport{iza:izadps:dp7022, author={Gralla, Rafael and Kraft, Kornelius}, title={Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms}, year={2012}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={7022}, url={https://www.iza.org/publications/dp7022}, 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}, }