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Training hold up and social labour markets

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  • Chatterji, Monojit

Abstract

This paper seeks to analyse the impact on training outcomes of labour markets with a social dimension which enhances workers rights and benefits, including the right to unionise. The ILO in particular champions the cause of such social labour markets both on the grounds that they represent fundamental rights as well as on the grounds that they generate helpful economic outcomes. In the context of on the job training, this paper demonstrates that the benefits of such social labour markets are mixed. In particular, it demonstrates that whilst unionisation can increase productivity and mitigate training hold up, there are also risks to increasing union power.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 2 (April)
Pages: 202-214

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Handle: RePEc:eee:labeco:v:15:y:2008:i:2:p:202-214

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Web page: http://www.elsevier.com/locate/labeco

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References

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  1. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
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  7. Booth, Alison L. & Chatterji, Monojit, 1996. "Unions and efficient training," ISER Working Paper Series 96-13, Institute for Social and Economic Research.
  8. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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  13. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
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  15. Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-78, June.
  16. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, vol. 74(5), pages 893-919, December.
  17. Stevens, Margaret, 1994. "Labour Contracts and Efficiency in On-the-Job Training," Economic Journal, Royal Economic Society, vol. 104(423), pages 408-19, March.
  18. Ronald G. Ehrenberg & Daniel R. Sherman & Joshua L. Schwarz, 1983. "Unions and productivity in the public sector: A study of municipal libraries," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 36(2), pages 199-213, January.
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Cited by:
  1. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.

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