Willman, Paul, Bryson, Alex, Gomez, Rafael and Kretschmer, Tobias
Employee voice: a transaction costs perspective.
NIESR discussion paper,
Discussion paper No. 399.
National Institute of Economic and Social Research, London, UK.
Full text not available from this repository.
Argues that whether it is better to adopt voice or exit depends on the nature of the transaction for both parties: the strongest voice-sustaining equilibrium is where both parties see voice as preferable to exit. Notes that this is likely where both parties have substantial sunk costs. Applies insights from transaction cost economics to voice and exit in the employment relationship. Considers which types of employment relationship are likely to sustain voice and which are not using a model of the employment contract that originates with Oliver Williamson. Based on this, uses a simple cost benefit model which deals with two related questions. First, where is voice likely to emerge and, second, what type of voice is it likely to be? Applies then the model empirically to workplace data for Britain to shed light on the size and composition of the "no voice" sector; the emergence of a sizeable "non-union" voice sector; the persistence of unionization among existing establishments; and the economic outcomes associated with voice choice by firms.
||© 2012 National Institute of Economic and Social Research
||employee voice, transaction costs, unions
|Library of Congress subject classification:
||H Social Sciences > HD Industries. Land use. Labor
|Journal of Economic Literature Classification System:
||J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J50 - General
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J53 - Labor-Management Relations; Industrial Jurisprudence
L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises; Privatization; Contracting Out
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M54 - Labor Management (team formation, worker empowerment, job design, tasks and authority, work arrangemetns, job satisfaction)
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M55 - Labor Contracting Devices: Outsourcing; Franchising; Other
||Research centres and groups > Centre for Economic Performance (CEP)
||Discussion paper No. 399
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