%0 Report %A Gralla, Rafael %A Kraft, Kornelius %T Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms %D 2012 %8 2012 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 7022 %U https://www.iza.org/publications/dp7022 %X 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. %K employment growth %K dismissals %K hires %K works councils %K difference-in-differences