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Training hold up and social labour markets

  • Chatterji, Monojit

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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  1. Miller, Paul & Mulvey, Charles, 1993. "What Do Australians Unions Do?," The Economic Record, The Economic Society of Australia, vol. 69(206), pages 315-42, September.
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  5. Stevens, Margaret, 1994. "Labour Contracts and Efficiency in On-the-Job Training," Economic Journal, Royal Economic Society, vol. 104(423), pages 408-19, March.
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  9. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October.
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  11. Richard Freeman, 2004. "Are European Labor Markets As Awful As All That?," CEP Discussion Papers dp0644, Centre for Economic Performance, LSE.
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  18. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
  19. Richard B. Freeman, 2006. "Searching for the EU Social Dialogue Model," NBER Working Papers 12306, National Bureau of Economic Research, Inc.
  20. Lucifora, Claudio, 1998. "The impact of unions on labour turnover in Italy:: Evidence from establishment level data," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 353-376, May.
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