Gralla, RafaelKraft, Kornelius2011-11-032011-11-032011-11-03http://hdl.handle.net/2003/2917310.17877/DE290R-3245This 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.enDiscussion Paper / SFB 823;43/2011difference -in- differencesdismissalsemployment growthhiresworks councils310330620working paper