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Labour Market Regimes and Worker Recruitment and Retention in the European Union: Plant Comparisons

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  • Jane Morton
  • W. S. Siebert

Abstract

We analyse worker recruitment and retention outcomes, contrasting production worker skill profiles in the UK subsidiaries of five multinationals with, in each case, a matched plant in another EU state. From personnel records we build up plant distributions of worker pay, age, schooling, prior experience and tenure. We find evidence of local management discretion, with differences in unit labour costs and in recruitment/retention outcomes between the matched subsidiaries. UK plants have a ‘hire and fire’ environment and a less skilled worker mix. Such outcomes can be linked to the UK’s lower labour costs and less regulated labour market.

Suggested Citation

  • Jane Morton & W. S. Siebert, 2001. "Labour Market Regimes and Worker Recruitment and Retention in the European Union: Plant Comparisons," British Journal of Industrial Relations, London School of Economics, vol. 39(4), pages 505-528, December.
  • Handle: RePEc:bla:brjirl:v:39:y:2001:i:4:p:505-528
    DOI: 10.1111/1467-8543.00212
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    Cited by:

    1. Kirsten Daniel & W. S. Siebert, 2005. "Does employment protection reduce the demand for unskilled labour?," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 197-222.
    2. Bayo-Moriones, Alberto & Galdon-Sanchez, Jose Enrique & Martinez-de-Morentin, Sara, 2008. "What Are the Factors Behind Pay Settlements? Evidence from Spanish and British Data," IZA Discussion Papers 3401, Institute of Labor Economics (IZA).
    3. Samuel Muehlemann, 2013. "Der Einfluss der Internationalisierung auf die arbeitsmarktorientierte Bildung," Economics of Education Working Paper Series 0092, University of Zurich, Department of Business Administration (IBW).

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