Training hold up and social labour markets

Monojit Chatterji

Labour Economics, 2008, vol. 15, issue 2, 202-214

Abstract: This paper seeks to analyse the impact on training outcomes of labour markets with a social dimension which enhances workers rights and benefits, including the right to unionise. The ILO in particular champions the cause of such social labour markets both on the grounds that they represent fundamental rights as well as on the grounds that they generate helpful economic outcomes. In the context of on the job training, this paper demonstrates that the benefits of such social labour markets are mixed. In particular, it demonstrates that whilst unionisation can increase productivity and mitigate training hold up, there are also risks to increasing union power.

Date: 2008
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