Worker participation in decision-making, worker sorting, and firm performance / Steffen Müller, Georg Neuschäffer
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Worker participation in decision-making, worker sorting, and firm performance
Discovery
1724521764
URN
urn:nbn:de:gbv:3:2-122750
DOI
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [13. Juli 2020]
Content
1 Online-Ressource (III, 40 Seiten, 2,58 MB) : Diagramme
Edition
Language
eng
Comment
Abstract
Worker participation in decision-making is often associated with high-wage and high-productivity firm strategies. Using linked-employer-employee data for Germany and worker fixed effects from a two-way fixed effects model of wages capturing observed and unobserved worker quality, we find that establishments with formal worker participation via works councils indeed employ higher-quality workers. We show that worker quality is already higher in plants before council introduction and further increases after the introduction. Importantly, we corroborate previous studies by showing positive productivity and profitability effects even after taking into account worker sorting.
Series
IWH-Diskussionspapiere ; 2020, No. 11 (July 2020) ppn:837399270