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Competence, knowledge, and the labour market: the role of complementarities

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  • Gatti, Donatella

Abstract

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.

Suggested Citation

  • Gatti, Donatella, 2000. "Competence, knowledge, and the labour market: the role of complementarities," Discussion Papers, Research Unit: Economic Change and Employment FS I 00-302, Social Science Research Center Berlin (WZB).
  • Handle: RePEc:zbw:wzbece:fsi00302
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    References listed on IDEAS

    as
    1. Marsden, David, 1999. "A Theory of Employment Systems: Micro-Foundations of Societal Diversity," OUP Catalogue, Oxford University Press, number 9780198294221.
    2. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    3. Franz, Wolfgang & Soskice, David W., 1994. "The German apprenticeship system," Discussion Papers 11, University of Konstanz, Center for International Labor Economics (CILE).
    4. Masahiko Aoki, 2013. "Horizontal vs. Vertical Information Structure of the Firm," Chapters,in: Comparative Institutional Analysis, chapter 5, pages 57-58 Edward Elgar Publishing.
    5. Gatti, Donatella, 2000. "Unemployment and Innovation Patterns: The Critical Role of Coordination," Industrial and Corporate Change, Oxford University Press, vol. 9(3), pages 521-544, September.
    6. Donatella Gatti, 1999. "Equilibrium Unemployment, the Nature of Competence, the Organization of the Firm," Economia politica, Società editrice il Mulino, issue 1, pages 13-34.
    7. Eyraud, Francois & Marsden, David & Silvestre, Jean-Jacques, 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.
    8. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
    9. 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.
    10. 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.
    11. Hildegard Brauns & Susanne Steinmann & Annick Kieffer & Catherine Marry, 1997. "Does Education matter? France and Germany in Comparative Perspective," MZES Working Papers 20, MZES.
    12. 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.
    13. 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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    More about this item

    Keywords

    institutional complementarity; incentives; training; labor market institutions; company organization.;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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