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- Title
Betriebsräte und Beschäftigungswachstum: Spielt die Spezifikation der Betriebsgröße eine Rolle für den geschätzten Zusammenhang?
- Authors
Jirjahn, Uwe
- Abstract
Recent econometric studies show a neutral-to-positive effect of workplace codetermination on economic outcomes. In contract, a study by Addison and Teixeira (2006) obtains surprisingly pessimistic results: works councils have a negative effect on employment growth. Consequently, the present study investigates how far this effect is to be explained by the model's specification of employment size. It finds that works councils have a negative effect on employment growth only when employment size is measured as a linear effect. When it is measured in proportional, logarithmic, form, the study finds no effect on employment growth. These results mean that the apparently negative effect of works councils on employment growth is the result of specification errors. The existence of a positive relationship between works council presence and firm size accounts for the apparently negative relationship between employment growth and works councils.
- Subjects
ECONOMETRICS; WORKS councils; EMPLOYMENT; LOGARITHMIC functions; PERSONNEL management; INDUSTRIAL relations; EMPLOYEE participation in management; ECONOMIC trends; LABOR process
- Publication
Industrielle Beziehungen, 2008, Vol 2008, Issue 3, p279
- ISSN
0943-2779
- Publication type
Article