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Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany

  • John S. Heywood
  • Uwe Jirjahn

We estimate of the determinants of performance appraisal, profit sharing and employee share ownership schemes for a representative sample of German establishments. The results demonstrate that foreign owned establishments make more use of each of these HRM practices than domestically owned establishments. Moreover, the role of Germany's unique works councils varies critically by ownership. Among domestically owned establishments, works councils are associated with an increased probability of using each of the three practices but this does not hold true for foreign owned establishments. These results inform the on-going debate over the extent to which foreign firms adopt uniform practices independent of local institution and the extent to which they adapt and participate in those local institutions.

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File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2011-05.pdf
File Function: First version, 2011
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Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2011-05.

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Length: 43 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:trr:wpaper:201105
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