TY - RPRT AU - Gralla, Rafael AU - Kraft, Kornelius TI - Separating Introduction Effects from Selectivity Effects: The Differences in Employment Patterns of Co-Determined Firms PY - 2012/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7022 UR - https://www.iza.org/publications/dp7022 AB - 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. KW - employment growth KW - dismissals KW - hires KW - works councils KW - difference-in-differences ER -