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

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  • Jirjahn, Uwe
  • Heywood, John S.

Abstract

We use a representative sample of German establishments to show that those with foreign ownership are more likely to use performance appraisal, profit sharing and employee share ownership than are those with domestic ownership. Moreover, we show that works councils are associated with an increased probability of using each of the three practices when under domestic ownership but not when under foreign ownership. These results inform the on-going debate over institutional duality, the extent to which foreign firms adopt uniform practices independent of local institutions and the extent to which they adapt and participate in those local institutions.

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  • Jirjahn, Uwe & Heywood, John S., 2013. "Variable Pay, Industrial Relations and Foreign Ownership: Evidence from Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79829, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79829
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    Cited by:

    1. Uwe JIRJAHN & Stephen C. SMITH, 2018. "Nonunion Employee Representation: Theory And The German Experience With Mandated Works Councils," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 201-233, March.
    2. Jirjahn, Uwe, 2017. "Foreign Ownership and Intra-Firm Union Density in Germany," GLO Discussion Paper Series 149, Global Labor Organization (GLO).
    3. Uwe Jirjahn, 2015. "Research on Trade Unions and Collective Bargaining in Germany: The Contribution of Labor Economics," Research Papers in Economics 2015-10, University of Trier, Department of Economics.
    4. repec:spr:jlabre:v:38:y:2017:i:4:d:10.1007_s12122-017-9259-2 is not listed on IDEAS
    5. Heywood, John S. & Jirjahn, Uwe & Struewing, Cornelia, 2017. "Locus of control and performance appraisal," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 205-225.
    6. Uwe Jirjahn, 2016. "Works Councils and Employer Attitudes toward the Incentive Effects of HRM Practices," Research Papers in Economics 2016-07, University of Trier, Department of Economics.
    7. Uwe Jirjahn, 2018. "The adoption and termination of profit sharing for employees: does management’s attitude play a role?," Applied Economics, Taylor & Francis Journals, vol. 50(2), pages 108-127, January.
    8. Thomas Cornelissen & John Heywood & Uwe Jirjahn, 2014. "Reciprocity and Profit Sharing: Is There an Inverse U-shaped Relationship?," Journal of Labor Research, Springer, vol. 35(2), pages 205-225, June.
    9. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Sara Martinez-de-Morentin, 2017. "Performance Measurement and Incentive Intensity," Journal of Labor Research, Springer, vol. 38(4), pages 496-546, December.
    10. Tony Edwards & Rocío Sánchez-Mangas & Patrice Jalette & Jonathan Lavelle & Dana Minbaeva, 2016. "Global standardization or national differentiation of HRM practices in multinational companies? A comparison of multinationals in five countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(8), pages 997-1021, October.
    11. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics 2014-09, University of Trier, Department of Economics.
    12. Verena Dill & Uwe Jirjahn, 2013. "Foreign Owners and the Quality of Industrial Relations in Germany," Research Papers in Economics 2013-07, University of Trier, Department of Economics.

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    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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