126 (2) 2006

On Estimating the Effect of Co-Determination on Personnel Turnover

Kornelius Kraft

This article discusses earlier work by Frick (1996) on the impact of works councils on turnover in Germany. It turns out that his econometric methodology can be improved in several ways. Additionally the number of dismissals can be extended by including fixed term contracts that are not prolongated. Recalculating by use of his data shows that his results are very sensitive to changes in the econometric methodology as well as with respect to the contruction of variables.

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