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Competence, Knowledge, and the Labour Market. The Role of complementarities

  • Donatella Gatti

    (PSE & IZA)

This paper develops a theoretical analysis of training regimes as outcomes of a complementarity between organizational and institutional factors that determine firms’ and workers’ incentives as regards skills. Specifically, the paper proposes that, on the one hand, knowledge embeddedness within firms is the determinant of firms’ preferences concerning training, while, on the other, labor market institutionalization provides the framework for workers’ preferences. Applying a criterion of coherence between firm and worker incentives, two stable configurations are singled out. The former is shown to correspond to the Japanese model of training, while the latter conforms more to the German experience.

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Paper provided by EconWPA in its series Labor and Demography with number 0507006.

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Date of creation: 08 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0507006
Note: Type of Document - pdf
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  1. Alice Lam, 1998. "Tacit Knowledge, Organisational Learning and Innovation A Societal Perspective," DRUID Working Papers 98-22, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  2. David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 25-60 National Bureau of Economic Research, Inc.
  3. Francois Eyraud & David Marsden & Jean-Jacques Silvestre, 1990. "Occupational and internal labour markets in Britain and France," LSE Research Online Documents on Economics 21305, London School of Economics and Political Science, LSE Library.
  4. Franz, Wolfgang & Soskice, David W., 1994. "The German apprenticeship system," Discussion Papers 11, University of Konstanz, Center for International Labor Economics (CILE).
  5. Peter Berg, 1994. "Strategic Adjustments in Training: A Comparative Analysis of the U.S. and German Automobile Industries," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 77-108 National Bureau of Economic Research, Inc.
  6. Gatti, Donatella, 2000. "Unemployment and Innovation Patterns: The Critical Role of Coordination," Industrial and Corporate Change, Oxford University Press, vol. 9(3), pages 521-44, September.
  7. Acemoglu, Daron & Pischke, Jörn-Steffen, 1998. "The Structure of Wages and Investment in General Training," CEPR Discussion Papers 1833, C.E.P.R. Discussion Papers.
  8. Hildegard Brauns & Susanne Steinmann & Annick Kieffer & Catherine Marry, 1997. "Does Education matter? France and Germany in Comparative Perspective," MZES Working Papers 20, MZES.
  9. Gatti Donatella, 1999. "Equilibrium Unemployment, the Nature of Competence, the Organization of the Firm," Economia politica, Società editrice il Mulino, issue 1, pages 13-34.
  10. Masahiko Aoki, 2013. "Horizontal vs. Vertical Information Structure of the Firm," Chapters, in: Comparative Institutional Analysis, chapter 5, pages 57-58 Edward Elgar.
  11. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  12. Finegold, David & Soskice, David, 1988. "The Failure of Training in Britain: Analysis and Prescription," Oxford Review of Economic Policy, Oxford University Press, vol. 4(3), pages 21-53, Autumn.
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