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Variable Pay, Industrial Relations and Foreign Ownership: Evidence from G ermany
Author(s) -
Heywood John S.,
Jirjahn Uwe
Publication year - 2014
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/bjir.12032
Subject(s) - foreign ownership , business , sample (material) , profit sharing , profit (economics) , industrial organization , microeconomics , economics , finance , foreign direct investment , chemistry , chromatography , macroeconomics
We use a representative sample of G erman establishments to show that those with foreign ownership are more likely to use performance appraisal, profit‐sharing and employee share ownership than 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 ongoing 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.