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Poaching, Courts, and Settlements:Complementarity of Governance in Labor Markets

Transition between private governance mechanism and the state court is not necessarily unidirectional. This research assumes that non-monotonic changes in governance mechanism comes from complementarity between the private and public mechanisms when neither of both is sufficiently efficient. Then it studies transition of governance in the labor market of Japanese silk-reeling industry from the 1890s to the 1920s, which rapidly grew then and often showed poaching, and ascertains that employers first had recourse to the court for enforcement of employment contract, they second built private mechanisms for settlement backed by the court, and third abandoned the private mechanism.

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File URL: http://www.iss.u-tokyo.ac.jp/publishments/dpf/pdf/f-145.pdf
File Function: Revised version, Jan. 2014
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Paper provided by Institute of Social Science, The University of Tokyo in its series ISS Discussion Paper Series (series F) with number f145.

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Length: 26 pages
Date of creation: 01 Jun 2009
Date of revision: 21 Jan 2014
Handle: RePEc:itk:issdps:f145
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  1. Booth, Alison L & Frank, Jeff, 1997. "Performance-Related Pay," CEPR Discussion Papers 1593, C.E.P.R. Discussion Papers.
  2. repec:cup:cbooks:9780521105262 is not listed on IDEAS
  3. Lagerlöf, Nils-Petter, 2003. "Slavery and other property rights," MPRA Paper 372, University Library of Munich, Germany, revised 30 Aug 2006.
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