IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0507010.html
   My bibliography  Save this paper

The Equilibrium Rate of Unemployment in Varying Micro- Institutional Settings

Author

Listed:
  • Donatella Gatti

    (PSE & IZA)

Abstract

A major issue in the current economic debate is related to the striking difference betweenEurope, Japan and US concerning the level and evolution of unemployment. This paperexplores the micro determinants of these observed stylized facts. In a first part, atheoretical framework is presented allowing to address this comparative analysis. Thestarting point is the definition of different micro-institutional settings encompassing: (i) the structure of the firm; (ii) the system of education or vocational training; (iii) thenature of the labor market. In particular, the notion of mode of organization of the firmwill be defined. In a second part, a model is proposed which takes up a radicaleconomics perspective to analyze the choice made by firms about wage and effort, subject to their mode of organization. The main results point to the crucial role played by the mode of organization of the firm and the nature of workers' competence as key-determinants of the different observable levels of the unemployment rate across main developed countries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Donatella Gatti, 2005. "The Equilibrium Rate of Unemployment in Varying Micro- Institutional Settings," Macroeconomics 0507010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0507010
    Note: Type of Document - pdf
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0507/0507010.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anne Perrot & André Zylberberg, 1989. "Salaire d'efficience et dualisme du marché du travail," Revue Économique, Programme National Persée, vol. 40(1), pages 5-20.
    2. Samuel Bowles & Robert Boyer, 1990. "Labour Market Flexibility and Decentralisation as Barriers to High Employment? Notes on Employer Collusion, Centralised Wage Bargaining and Aggregate Employment," International Economic Association Series, in: Renato Brunetta & Carlo Dell’Aringa (ed.), Labour Relations and Economic Performance, chapter 13, pages 325-352, Palgrave Macmillan.
    3. Bowles, Samuel, 1985. "The Production Process in a Competitive Economy: Walrasian, Neo-Hobbesian, and Marxian Models," American Economic Review, American Economic Association, vol. 75(1), pages 16-36, March.
    4. Lazonick, William & West, Jonathan, 1995. "Organizational Integration and Competitive Advantage: Explaining Strategy and Performance in American Industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(1), pages 229-270.
    5. D. Gatti, 1997. "Flexible Technology, Unemployment and Effort: The Role of the Organization of the Firm," Working Papers ir97004, International Institute for Applied Systems Analysis.
    6. Masahiko Aoki, 2013. "Horizontal vs. Vertical Information Structure of the Firm," Chapters, in: Comparative Institutional Analysis, chapter 5, pages 57-58, Edward Elgar Publishing.
    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. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    9. David Marsden, 1990. "Institutions and Labour Mobility: Occupational and Internal Labour Markets in Britain, France, Italy and West Germany," International Economic Association Series, in: Renato Brunetta & Carlo Dell’Aringa (ed.), Labour Relations and Economic Performance, chapter 17, pages 414-438, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. D. Gatti, 1997. "Flexible Technology, Unemployment and Effort: The Role of the Organization of the Firm," Working Papers ir97004, International Institute for Applied Systems Analysis.
    2. 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, WZB Berlin Social Science Center.
    3. Gatti, Donatella, 1998. "Unemployment and innovation patterns: the role of business coordination and market competition," Discussion Papers, Research Unit: Economic Change and Employment FS I 98-306, WZB Berlin Social Science Center.
    4. Leone Leonida & Marianna Marra & Sergio Scicchitano & Antonio Giangreco & Marco Biagetti, 2020. "Estimating the Wage Premium to Supervision for Middle Managers in Different Contexts: Evidence from Germany and the UK," Work, Employment & Society, British Sociological Association, vol. 34(6), pages 1004-1026, December.
    5. Nathalie Greenan & Emmanuelle Walkowiak, 2005. "Informatique, organisation du travail et interactions sociales," Économie et Statistique, Programme National Persée, vol. 387(1), pages 35-63.
    6. Alex Bryson & Christine Erhel & Zinaïda Salibekyan, 2017. "The Effects of Firm Size on Job Quality: A Comparative Study for Britain and France," DoQSS Working Papers 17-08, Quantitative Social Science - UCL Social Research Institute, University College London.
    7. Annika Campaner & John S. Heywood & Uwe Jirjahn, 2022. "Flexible work organization and employer provided training: Evidence from German linked employer‐employee data," Kyklos, Wiley Blackwell, vol. 75(1), pages 3-29, February.
    8. Markus Gangl, 2000. "Education and Labour Market Entry across Europe : The Impact of Institutional Arrangements in Training Systems and Labour Markets," MZES Working Papers 25, MZES.
    9. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March.
    10. Grip Andries de & Wolbers Maarten H.J., 2003. "Do Low-Skilled Youngsters get Better Jobs in Countries where Internal Labour Markets Dominate?," ROA Research Memorandum 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    11. Michael Waldman, 2012. "Theory and Evidence in Internal LaborMarkets [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    12. Stefano Dughera, 2020. "Skills, preferences and rights: evolutionary complementarities in labor organization," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 843-866, July.
    13. Bakos, J. Yannis. & Brynjolfsson, Erik., 1993. "When quality matters : information technology and buyer-supplier relationships," Working papers 140. Working paper (Sloan, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    14. Yingyi Qian & Gerard Roland & Chenggang Xu, 1999. "Coordinating Changes in M-form and U-form Organizations," William Davidson Institute Working Papers Series 284, William Davidson Institute at the University of Michigan.
    15. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    16. Sauro Mocetti, 2004. "Social Protection and Human Capital: Test of a Hypothesis," Department of Economics University of Siena 425, Department of Economics, University of Siena.
    17. Anna Kim;Ki-Wan Kim, 2003. "Returns to Tertiary Education in Germany and the UK: Effects of Fields of Study and Gender," MZES Working Papers 62, MZES.
    18. Francis Green, 2000. "Why has Work Effort become more intense? Conjectures and Evidence about Effort-Biased Technical Change and other stories," Studies in Economics 0003, School of Economics, University of Kent.
    19. Hildegard Brauns & Susanne Steinmann & Annick Kieffer & Catherine Marry, 1997. "Does Education matter? France and Germany in Comparative Perspective," MZES Working Papers 20, MZES.
    20. Marsden, David, 2010. "The growth of extended 'entry tournaments' and the decline of institutionalised occupational labour markets in Britain," LSE Research Online Documents on Economics 28740, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • E - Macroeconomics and Monetary Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0507010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.