Arbeitspapier

Worker participation in decision-making, worker sorting, and firm performance

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.

Sprache
Englisch

Erschienen in
Series: IWH Discussion Papers ; No. 11/2020

Klassifikation
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Thema
works councils
worker sorting
worker quality
between-firm wage inequality
productivity
profits

Ereignis
Geistige Schöpfung
(wer)
Müller, Steffen
Neuschäffer, Georg
Ereignis
Veröffentlichung
(wer)
Halle Institute for Economic Research (IWH)
(wo)
Halle (Saale)
(wann)
2020

Handle
URN
urn:nbn:de:101:1-2020071511000371234439
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Müller, Steffen
  • Neuschäffer, Georg
  • Halle Institute for Economic Research (IWH)

Entstanden

  • 2020

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