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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
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  1. Francis Green & Stephen Machin & David Wilkinson, 1999. "Trade Unions and Training Practices in British Workplaces," ILR Review, Cornell University, ILR School, vol. 52(2), pages 179-195, January.
  2. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 79-119.
  3. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-68, May.
  5. Keith A. Bender & Peter J. Sloane, 1998. "Job satisfaction, trade unions, and exit-voice revisited," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 222-240, January.
  6. 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.
  7. Richard B. Freeman, 2004. "Are European labor markets as awful as all that?," LSE Research Online Documents on Economics 19946, London School of Economics and Political Science, LSE Library.
  8. Miller, Paul & Mulvey, Charles, 1992. "What Do Australian Unions Do?," Institute for Research on Labor and Employment, Working Paper Series qt7rk2x5x2, Institute of Industrial Relations, UC Berkeley.
  9. Richard B. Freeman, 2006. "Searching for the EU Social Dialogue Model," NBER Working Papers 12306, National Bureau of Economic Research, Inc.
  10. Stevens, Margaret, 1994. "Labour Contracts and Efficiency in On-the-Job Training," Economic Journal, Royal Economic Society, vol. 104(423), pages 408-19, March.
  11. 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.
  12. 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.
  13. Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
  14. Richard B. Freeman & James L. Medoff, 1979. "The Two Faces of Unionism," NBER Working Papers 0364, National Bureau of Economic Research, Inc.
  15. 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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  17. repec:oup:qjecon:v:113:y:1998:i:1:p:78-118 is not listed on IDEAS
  18. Oliver E. Williamson & Michael L. Wachter & Jeffrey E. Harris, 1975. "Understanding the Employment Relation: The Analysis of Idiosyncratic Exchange," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 250-278, Spring.
  19. 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.
  20. Francesca Bettio & Samuel Rosenberg, 1999. "Labour Markets and Flexibility in the 1990s: The Europe-USA opposition revisited," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(3), pages 269-279.
  21. 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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