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Titel
Worker participation in decision-making, worker sorting, and firm performance / Steffen Müller, Georg Neuschäffer
VerfasserMüller, Steffen ; Neuschäffer, Georg
ErschienenHalle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [13. Juli 2020]
Umfang1 Online-Ressource (III, 40 Seiten, 2,58 MB) : Diagramme
SpracheEnglisch
SerieIWH-Diskussionspapiere ; 2020, No. 11 (July 2020)
URNurn:nbn:de:gbv:3:2-122750 
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Worker participation in decision-making, worker sorting, and firm performance [2.58 mb]
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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.