Tab. 7 Description of the variables

Expanding outsourcing in the last two years

1/0 dummy: 1 if the establishment said to have been expanding “in buying products and services from outside sources in the last two years.”

Ratio of externally sourced inputs to value added

Ratio of externally sourced inputs to value added.

Change in the ratio of externally sourced inputs to value added

Change in the ratio of externally sourced inputs to value added.

Sales per employee

Volume of sales per employee (In Euros.)

Export share

Share of exports in volume of sales.

Increasing sales expected

1/0 dummy: 1 if sales are expected to increase; 0 if “sales stay approximately at the same.”

Total of all investments

Approximate sum of all investments (in the establishment or in the firm?) (In Euros.)

Investments in ICT

1/0 dummy: 1 if establishment invested in EDP/ICT; 0 if no investments or investments in other areas.

Investments in production facilities

1/0 dummy: 1 if establishment invested in production facilities, furniture and office equipment; 0 if no investments or investments in other areas.

Wages per employee

Gross wages per employee (June) (In Euros.)

State-of-art technology

1/0 dummy: 1 if the overall technical state of the plant and machinery, furniture and office equipment of the establishment in comparison to other establishments in the same industry is assessed as belonging to the two highest categories on a scale from one to five (viz. “obsolete” to “state-of-the-art”); 0 otherwise.

Works council

1/0 dummy: 1 if works council is present; 0 otherwise.

Collective agreement

1/0 dummy: 1 if there is either a company or industry-wide wage agreement; 0 otherwise.

Western Germany

1/0 dummy: 1 if plant located in western Germany; 0 otherwise.

Number of employees

Number of employees in the current year (In logs.)

Share of separations

Number of separations as a percentage of total employment.

Share of high-skilled employees

Share of high skilled in total employment.

Share of fixed-term employees

Share of fixed-term contract workers in total employment.

New establishment

1/0 dummy: 1 if establishment/firm created before 1990; 0 otherwise.

Single establishment firm (without subsidiaries)

1/0 dummy: 1 if single establishment firm; 0 otherwise.

Partnership

1/0 dummy: 1 if partnership (limited partnership, general partnership, partnership under legal code); 0 otherwise.

Limited liability corporation

1/0 dummy: 1 if limited liability company or limited commercial partnership with a limited company as partner; 0 otherwise.

Company limited by shares

1/0 dummy: 1 if company limited by shares (public limited company, partnership limited by shares; 0 otherwise).

Public corporation

1/0 dummy: 1 if public corporation, public law foundation, institution, authority or office; 0 otherwise.

Other legal form

1/0 dummy: 1 if other legal form; 0 otherwise.