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Why do voice regimes differ?

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  • Willman, Paul
  • Bryson, Alex
  • Gomez, Rafael

Abstract

In this paper we seek to explain the emergence of different voice regimes, and to do so by using approaches from institutional economics. In particular we analyse the emergence of different voice regimes as a contracting problem; a ¿make¿ or ¿buy¿ decision on the part of the employer. A unique feature of the model is that the firm, having chosen its particular employee management regime, faces switching costs if it attempts to alter its original make or buy decision. A particular dimension of the employee management regime decision is the use of the union as agent or supplier of voice, or elements thereof. We argue that there are circumstances in which the employer may, on grounds of cost or risk, seek to subcontract aspects of the management of labour to a union and, further, that this (along with the presence of switching costs) helps explain the continued recognition of trade unions in many firms. In other circumstances, however, the employer may seek to construct voice mechanisms without union involvement. Workplace data from Britain are used to test these and other implications of the model.

Suggested Citation

  • Willman, Paul & Bryson, Alex & Gomez, Rafael, 2003. "Why do voice regimes differ?," LSE Research Online Documents on Economics 20017, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:20017
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    References listed on IDEAS

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    1. Andrew Hildreth, 1999. "What Has Happened to the Union Wage Differential in Britain in the 1990s?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(1), pages 5-31, February.
    2. Alex Bryson, 2000. "Have British Workers Lost their Voice, or Have they Gained a New One?," PSI Research Discussion Series 2, Policy Studies Institute, UK.
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    6. te Velde, Dirk Willem, 2003. "Foreign Ownership, Microelectronic Technology and Skills: Evidence for British Establishments," National Institute Economic Review, National Institute of Economic and Social Research, vol. 185, pages 93-106, July.
    7. Stephen Machin, 2000. "Union Decline in Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 631-645, December.
    8. Alex Bryson, 2001. "Union Effects on Workplace Governance 1983 -1998," PSI Research Discussion Series 8, Policy Studies Institute, UK.
    9. David Blanchflower & Alex Bryson, 2002. "Changes over time in union relative wage effects in the UK and the US revisited," NBER Working Papers 9395, National Bureau of Economic Research, Inc.
    10. Willman, Paul, 1982. "Opportunism in labour contracting : An application of the `organisational failures' framework," Journal of Economic Behavior & Organization, Elsevier, vol. 3(1), pages 83-98, March.
    11. Henry S. Farber & Bruce Western, 2002. "Ronald Reagan and the Politics of Declining Union Organization," British Journal of Industrial Relations, London School of Economics, vol. 40(3), pages 385-401, September.
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    Cited by:

    1. Alex Bryson, 2004. "Unions and Workplace Closure in Britain, 1990–1998," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 282-302, June.
    2. Aleksandra Gregorič & Thomas Poulsen, 2020. "When Do Employees Choose to Be Represented on the Board of Directors? Empirical Analysis of Board‐Level Employee Representation in Denmark," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 241-272, June.
    3. Howard Gospel & P Willman, 2003. "High Performance Workplaces: the Role of Employee Involvement in a Modern Economy Evidence on the EU Directive Establishing a General Framework for Informing and Consulting Employees," CEP Discussion Papers dp0562, Centre for Economic Performance, LSE.
    4. Alex Bryson & John Forth & Simon Kirby, 2005. "High‐Involvement Management Practices, Trade Union Representation And Workplace Performance In Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 451-491, July.

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    More about this item

    Keywords

    trade unions; voice; transaction cost economics; switching costs;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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