ABSTRACT
Using German establishment data, this study finds that the share of blue-collar workers, an outdated production technology and a high-wage policy increase the probability that employers regard the threat of dismissal as a suitable incentive. A participatory human resource management policy, the incidence of a works council and difficulties in filling vacancies decrease the probability.
Disclosure statement
No potential conflict of interest was reported by the author.
Notes
1 Note that the theoretical predictions developed in Section II are general and do not depend of a specific point in time. Thus, even though the data set used is from the 1990s, it allows testing these theoretical predictions.