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Employer Strategies and Wages in New Service Activities: A Comparison of Co-ordinated and Liberal Market Economies

Author

Listed:
  • Rosemary Batt

    () (SILR - School of Industrial and Labor Relations - Cornell University)

  • Hiroatsu Nohara

    () (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)

  • Hyunji Kwon

    (King‘s College London)

Abstract

Using survey data for call centre establishments in eight countries, we examine the relationship between wages and human resource practices. Highinvolvement work design and the use of performance-based pay are significantly positively related to wages, whereas intensive use of performance monitoring is negatively associated with wages. These relationships are larger among liberal economies compared with co-ordinated ones, but individual country differences are large and, in many cases, do not conform to expectations regarding institutional differences between liberal and co-ordinated market economies. The exception is Denmark.

Suggested Citation

  • Rosemary Batt & Hiroatsu Nohara & Hyunji Kwon, 2010. "Employer Strategies and Wages in New Service Activities: A Comparison of Co-ordinated and Liberal Market Economies," Post-Print halshs-00484745, HAL.
  • Handle: RePEc:hal:journl:halshs-00484745
    DOI: 10.1111/j.1467-8543.2010.00789.x
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00484745
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    References listed on IDEAS

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    1. Paul Osterman, 2006. "The Wage Effects of High Performance Work Organization in Manufacturing," ILR Review, Cornell University, ILR School, vol. 59(2), pages 187-204, January.
    2. Rosemary Batt & Hiroatsu Nohara, 2009. "How Institutions and Business Strategies Affect Wages: A Cross-National Study of Call Centers," ILR Review, Cornell University, ILR School, vol. 62(4), pages 533-552, July.
    3. Virginia Doellgast & Ursula Holtgrewe & Stephen Deery, 2009. "The Effects of National Institutions and Collective Bargaining Arrangements on Job Quality in Front-Line Service Workplaces," ILR Review, Cornell University, ILR School, vol. 62(4), pages 489-509, July.
    4. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Leo McCann, 2014. "Disconnected Amid the Networks and Chains: Employee Detachment from Company and Union after Offshoring," British Journal of Industrial Relations, London School of Economics, vol. 52(2), pages 237-260, June.
    2. Streeck, Wolfgang, 2010. "E pluribus unum? Varieties and commonalities of capitalism," MPIfG Discussion Paper 10/12, Max Planck Institute for the Study of Societies.

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