Labor Relations Commons^™

Still A Coordinated Model? Market Liberalization And The Transformation Of Employment Relations In The German Telecommunications Industry, Virginia Doellgast

Virginia Doellgast

This paper examines recent changes in collective bargaining and employer strategies in the German telecommunications industry following market liberalization in the late 1990s. Germany’s distinctive co-determination and vocational training institutions encouraged large firms to adopt employment systems in technician and call center workplaces that relied on high levels of worker skill and discretion. However, organizational restructuring is undermining these gains, as firms use outsourcing and the creation of subsidiaries to escape or weaken company-level collective agreements. These trends have substantially weakened unions and contributed to the further disorganization of coordinated bargaining structures. Findings are based on interviews with union and …

Introduction: Institutional Change And Labor Market Segmentation In European Call Centers, Virginia Doellgast, Rosemary Batt, Ole H. Sorensen

Virginia Doellgast

This article examines the dynamics of workplace change in European call centers. Survey data and case studies from Austria, Denmark, France, Germany, the Netherlands and Spain show large national and sectoral differences in institutional inclusiveness and labor market segmentation. These reflect variation in the institutional constraints and resources available to employers and unions as they adjust to market changes. However, union strategies to organize new groups and close gaps in existing regulations are becoming increasingly important as restructuring undermines traditional forms of bargaining power.

Work-Unit Absenteeism: Effects Of Satisfaction, Commitment, Labor Market Conditions, And Time, John Hausknecht, Nathan J. Hiller, Robert J. Vance

John Hausknecht

Prior research is limited in explaining absenteeism at the unit level and over time. We developed and tested a model of unit-level absenteeism using five waves of data collected over six years from 115 work units in a large state agency. Unit-level job satisfaction, organizational commitment, and local unemployment were modeled as time-varying predictors of absenteeism. Shared satisfaction and commitment interacted in predicting absenteeism but were not related to the rate of change in absenteeism over time. Unit-level satisfaction and commitment were more strongly related to absenteeism when units were located in areas with plentiful job alternatives.

[Review Of The Book Employment And Development: A New Review Of Evidence, By David Turnham], Gary S. Fields

Gary S Fields

[Excerpt] I first encountered David Turnham’s work after majoring in labor economics in undergraduate and graduate school and spending a year in Nairobi studying and modeling the labor market there. The atmosphere in Kenya was crackling with intellectual excitement: John Harris and Michael Todaro had just showed how the solution to urban unemployment might be rural development, George Johnson had demonstrated that earnings function analysis ‘worked’ despite doubts about the quality of developing country data and the applicability of developed country concepts, Dharam Ghai was developing the basic human needs approach to development, and Joe Stiglitz was formulating efficiency wage …

Lifetime Migration In Colombia: Tests Of The Expected Income Hypothesis, Gary S. Fields

Gary S Fields

[Excerpt] People migrate and areas gain or lose population for a variety of reasons: differences in potential earnings, in job availability, in schooling opportunities, in quality of life, proximity to friends and relatives, and so on. The economic model of migration holds that the central factor determining individual migration decisions is the perceived opportunity to attain higher economic status. Area populations are expected to change differentially according to the economic opportunities offered. In empirical research in developed countries, economic factors have been shown to underlie most migration decisions. In developing countries, where the economic situation of the populace is far …

Labor Market Analysis Using Sipp, Gary S. Fields, George H. Jakubson

Gary S Fields

This paper examines the potentiality of the Survey of Income and Program Participation (SIPP) for labor market analysis. We consider five areas of analysis: (1) labor force participation, employment, and unemployment; (2) labor market effects of income maintenance programs; (3) earnings; (4) work and retirement of the elderly; and (5) migration. We find that the SIPP is a potentially rich resource for labor market analysis, surpassing much of what is to be found in existing databases. We note some remaining problems and make recommendations for changes.

Employment And Economic Growth In Costa Rica, Gary S. Fields

Gary S Fields

Costa Rica’s economic growth in the last 25 years has had favorable labor market and income distribution consequences. Overall, employment growth kept pace with labor force growth, the mix of jobs improved, real wages rose, and relative inequality and absolute poverty fell. But during the economic crisis of 1980-82, when real per capita income plummeted, labor market conditions deteriorated markedly: unemployment doubled, employment composition worsened, and real wages fell by 40%. Growth, labor market conditions, and income distribution have moved together.

Import Competition In The High-Wage Sector And Trade Policy Effects On Labor, Gary S. Fields, Earl L. Grinols

Gary S Fields

This article evaluates the employment and welfare effects of increased trade competition and protection in economies with wage dualism, unemployment, and on-the-job search. A micro-based measure of economy welfare distinguishes between workers and other sectors of the economy is developed to deal with labor market imperfections and distributional issues. For example, increased competition in high-wage sector goods reduces high-wage employment, but may or may not increase overall unemployment. Policy may be chosen to mitigate loss in worker earnings that are partly or wholly offset by gains to consumers of the importable.

Stochastic Dominance In Mobility Analysis, Gary S. Fields, Jesse B. Leary, Efe A. Ok

Gary S Fields

This paper introduces a technique for mobility dominance and compares the degree of earnings mobility of men in the USA from 1970 to 1995. The highest mobility is found in the 1975–1980 or 1980–1985 periods.

The Employment Problem In Korea, Gary S. Fields

Gary S Fields

What Korea has is not an "unemployment problem" but rather an "employment problem." The employment problem includes continued high unemployment, but it goes well beyond it, also encompassing falling labor earnings, rising poverty and inequality, disproportionate impacts on disadvantaged groups, informalisation of employment, increased job insecurity, and consequent social strains. This paper documents Korea's employment problem, characterizes the problem as deficient aggregate demand rather than frictional or structural unemployment, examines in some detail three of the most important elements of the social safety net (the Employment Insurance System, the Livelihood Protection Program, and public works), and considers four major ways …

Are African Workers Getting Ahead In The New South Africa? Evidence From Kwazulu-Natal, 1993-1998, Paul L. Cichello, Gary S. Fields, Murray Leibbrandt

Gary S Fields

[Excerpt] In this paper, we use the KIDS panel data to answer three questions about the ‘progress’ of African workers in this one province in post-apartheid South Africa. First, how have African workers progressed as a group? Secondly, which African workers have progressed the most, and by how much have they progressed? Thirdly, to what extent is the progress made by workers driven by transitions between employment and unemployment, or between informal and formal sector employment? We reach the following major findings. First, African workers in KwaZulu-Natal had quite diverse experiences, but experienced positive progress on average. Second, those who …

Aid, Growth And Jobs, Gary S. Fields

Gary S Fields

Various development objectives are worthy, but one objective merits special attention: reducing the scourge of absolute economic misery in the world. This study focuses on an important but relatively underemphasized approach to poverty reduction: helping the poor earn more in the labour market for the work they do, so that they can buy the goods and services they need to move up out of poverty. The core of the study is divided into three sections: defining the global poverty challenge and the world’s employment problem, presenting policy options for improving employment outcomes for the poor, and suggesting ways of choosing …

Changing Internal Labor Markets In Service And Sales Occupations, Rosemary Batt

Rosemary Batt

[Excerpt] In this paper, I address the question of how deregulation in the telecommunications industry has altered the internal labor market structure of clerical and sales jobs—that is, the traditionally female-dominated operator, service, and sales jobs in the industry. This question is important for several reasons. First, from the perspective of the internal labor market literature, the Bell System represented a classic example of a highly developed and stable system. Given growing conventional wisdom that internal labor markets are disintegrating, the telecommunications industry provides a useful case for examining the extent to which corporate responses to deregulation have led to …

Labor Market Institutions And Restructuring In U.S. Deregulated Telecommunications Services, Rosemary Batt

Rosemary Batt

[Excerpt] This chapter summarizes some of the recent literature concerning the changing nature of markets, technology, and employment relations in deregulated telecommunications services in the United States. It draws on arguments and evidence from a series of studies over the last five years, most of which were undertaken by researchers at Cornell, MIT, and Rutgers universities in the United States. The research focuses on the relationship between market deregulation and technology change on the one hand, and changing business strategy, organizational structure, union relations, and work organization on the other. This chapter focuses on the extent to which labor market …

Deregulation And Restructuring In Telecommunications Services In The United States And Germany, Rosemary Batt, Owen Darbishire

Rosemary Batt

[Excerpt] Because of the slower pace of reform, however, Telekom also stands to learn from the mistakes made in the United States, where deregulation has led to increased inequality among consumers and workers. For consumers, the restructuring has benefited businesses because they no longer pay rates that subsidize universal residential service. Both business and high-end retail customers can take advantage of falling prices for long-distance calling, high-speed networks, or enhanced features such as voice messaging. For lower-income consumers, however, the basic costs of local service have risen, and these consumers are less likely to be able to take advantage of …

Interplant Transfer And Terminated Workers: A Case Study (Reply), David B. Lipsky

David B Lipsky

[Excerpt] The design of policies intended to aid workers who are threatened with displacement involves issues of a complex and difficult nature. The need for careful analysis of the issues is emphasized by Thomas Kochan's comment on my recent article. In that article I tried to point out the limitations of my analysis, the difficulties of generalizing on the basis of a case study, and the tentative nature of my conclusions. Space did not allow a full elaboration of these problems; now Kochan has performed a useful service by heightening our awareness of them. However, I cannot believe he has …

Industrial Relations And The Reorganization Of Work In West Germany: Lessons For The U.S., Lowell Turner

Lowell Turner

[Excerpt] Some have suggested that to compete in the new world economy we must not only adopt Japanese production practices but also abandon Western traditions of independent unionism. When U.S. trade unionists naturally resist, they are criticized as "adversarial." My argument is that U.S. managers do not need to break the unions or to transform them into subordinate enterprise unions in order to gain the benefits of new work organization. Rather than looking only to Japan for ways to get us out of our current competitive predicament, we should also look to Europe. A particularly useful example is West Germany, …

Unions, Markets, And Democracy In Latin America, Maria Lorena Cook

Maria Lorena Cook

[Excerpt] In the 1990s scholars of Latin America moved from a concern with democratization to a focus on the implementation of market economic reforms. With this shift, the appreciation of labor unions' value to society was lost. Whereas earlier analyses of democratic transitions recognized organized labor's important role in bringing an end to dictatorships, later studies of market reform viewed labor organizations as either obstacles to be overcome, "losers" to be compensated, or simply irrelevant.

Perhaps more important than scholarship's neglect of labor unions is the neglect that is reflected in policies toward labor in the region. Economic and labor …

Relaciones Industriales En America Del Norte: Sindicalismo Y Sector Automotriz En Los Estados Unidos [Industrial Relations In North America: Unions And The Auto Sector In The United States], Maria Lorena Cook

Maria Lorena Cook

[Excerpt] Este trabajo empieza por describir algunas de las tendencias generates de cambio que se han generado en los mercados de trabajo y en las relaciones industriales a nivel nacional en los Estados Unidos a raiz de los procesos de globalizacion en los ultimos anos, tomando como ejemplo el caso del sector automotriz. Tambien se consideran algunas de las respuestas y estrategias de los sindicatos norteamericanos frente a estos cambios: las de la AFL-CIO a nivel central, y las del sindicato del sector automotriz, el United Automobile Workers, o UAW. Los cambios que se han generado en los ultimos anos …

An Economic Analysis Of The Market For Law School Students, Ronald G. Ehrenberg

Ronald G. Ehrenberg

This study utilizes data from a number of sources to estimate how lawyers' starting salaries relate to their ability, the quality of law school they attended, and whether the law school was a private institution. Based upon this analysis, a benefit—cost analysis is conducted of the value of attending a high-quality private institution. Analyses are also done of how the financial attractiveness of law vis-a-vis other careers has changed in recent years and a conceptual framework discussed for law schools to use in allocating their financial aid resources.

A Diversity Of New Work Organization: Human-Centered, Lean, And In-Between, Lowell Turner, Peter Auer

Lowell Turner

Lean production, from Toyota, is said to be paradigmatic for future production organization in the auto industry. This article challenges that view. Case studies at auto plants in the U.S., Germany, and Sweden show a wide diversity of developing new work organization. Not only are there differences across countries, there are also substantial and persistent variations across firms and even individual plants. No single model of production is yet emerging from this diversity. Although there are common elements such as team and group work, just-in-time delivery, and "total quality management", the actual shape of new work organization depends on a …

Institutions And Activism: Crisis And Opportunity For A German Labor Movement In Decline, Lowell Turner

Lowell Turner

In recent decades, German unions have rested on their institutional laurels even as the ground has slipped away. This article analyzes two recent innovative campaigns based on grassroots mobilization that, the author argues, offer possibilities for renewed union strength. A breakthrough campaign against a militantly anti-union firm in the retail industry demonstrates the potential for a German brand of social movement unionism. The story line and institution-building strategy of this campaign fall entirely outside the framework of traditional German industrial relations. A second, very different campaign, from deep inside that traditional framework, has mobilized union members in Nordrhein-Westfalen (IG Metall’s …

Part-Time Employment In The United States, Ronald G. Ehrenberg, Pamela Rosenberg, Jeanne Li

Ronald G. Ehrenberg

[Excerpt] To say that part-time workers are less costly than full-time workers, however, is not an explanation for the trend in the use of part-time employees that has occurred. Rather, one must show that the relative cost advantage of part-time workers has increased over time and that variations in the relative cost advantage are associated with variations in the usage of part-time employment. Somewhat surprisingly, few researchers have tried to do this, and even these only indirectly. This paper addresses this issue, albeit in a slightly different way, focusing on data from the United States. We begin in the next …

Public Sector Labor Markets, Ronald G. Ehrenberg, Joshua L. Schwarz

Ronald G. Ehrenberg

This paper provides a critical survey of the literature dealing with public sector labor markets. It discusses the research by economists on wage determination in the state and local sector (including the effects of. unions), on the estimation of compensating wage differentials for pecuniary and nonpecuniary job characteristics, on the effects of unions on productivity, on the estimation of public sector demand and for labor functions, on dispute resolution, on public/private pay differentials, and on gender and race discrimination in the public sector. Numerous suggestions for future research are offered.

Retirement Policies, Employment, And Unemployment, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] There is a growing consensus among economists that reliance on aggregate demand policies alone will not be sufficient to move the economy to full employment with a nonaccelerating inflation rate, and that policies which alter the structure of labor markets will be required. While obvious structural policies such as public sector employment programs and training programs are the focus of current debate, many other public policies affect labor markets in subtle ways which may well adversely affect the level and distribution of employment and unemployment. To help improve the inflation-unemployment tradeoff, policymakers should seek to marginally modify these policies, …

[Review Of The Book Discrimination In Labor Markets], Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] In sum, I consider Discrimination in Labor Markets a fine volume. Anyone who has the slightest interest in the analysis of labor-market discrimination should seriously contemplate purchasing it. The relatively nontechnical nature of the papers will appeal to a wide range of readers, and the book should quickly find its way onto reading lists for undergraduate and graduate courses that discuss the economics of discrimination.

Studying Ourselves: The Academic Labor Market (Presidential Address To The Society Of Labor Economists, Baltimore, May 3, 2002), Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The study of academic labor markets by economists goes back at least to Adam Smith’s suggestion in The Wealth of Nations that a professor’s compensation be tied to the number of students that enrolled in his classes. This article focuses on three academic labor market issues that students at Cornell and I are currently addressing: the declining salaries of faculty employed at public colleges and universities relative to the salaries of their counterparts employed at private higher education institutions, the growing dispersion of average faculty salaries across academic institutions within both the public and private sectors, and the impact …

Academic Labor Supply, Ronald G. Ehrenberg

Ronald G. Ehrenberg

[Excerpt] The plan of this study is as follows. In the remainder of this chapter, some background data are presented on the academic labor market and new Ph.D. production in the United States. Chapter 7 describes a schematic model of academic labor supply and indicates the underlying trends since 1970 in a number of variables that contribute to projections of shortages of faculty. In Chapter 8, a general model of occupational choice and the decision to undertake and complete graduate study is sketched. This framework, available data, and the prior academic literature are then used to address students' choice of …

Policy Decisions And Research In Economics And Industrial Relations: An Exchange Of Views: Comment, Ronald G. Ehrenberg, Daniel S. Hamermesh, George E. Johnson

Ronald G. Ehrenberg

[Excerpt] John Dunlop has presented what are certainly some of the most provocative remarks to appear in a scholarly journal in the labor field in many years. We find much to agree with in his remarks; however, we also find many areas where we feel he condemns research because of his overly optimistic expectations about its ability to contribute to the policy process, and other areas where he appears to be unaware that research in labor economics has already contributed fairly directly to policy decisions.

Organizational Recruitment: Enhancing The Intersection Of Research And Practice, M. Susan Taylor, Christopher J. Collins

Christopher J Collins

[Excerpt] How have recruitment practices changed in response to the tight labor market pressures? A few brief examples will suffice for the present. Cisco Systems, a rapidly growing California-based networking firm, has replaced virtually all of its prior recruitment advertising (for example, newspaper, radio, etc.) with the Internet-based recruiting programs that are specially targeted to the desired applicant population. Based on their own market research that most job-related web entries are received from employed candidates searching the Internet during work hours, Cisco provides job browsers easy to access fake computer screens in case a boss or co-worker enters the room …