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Worker Participation in Decision‐making, Worker Sorting, and Firm Performance
2021
Industrial Relations
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 plants 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
doi:10.1111/irel.12288
fatcat:q3uyyaiwwzbjnlywuud6ixgnsq