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Competence, knowledge, and the labour market: the role of complementarities

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  • Gatti, Donatella

Abstract

This paper develops a theoretical analysis of training regimes as outcomes of a complementarity between organizational and institutional factors that determine firms' and workers' incentives as regards skills. Specifically, the paper proposes that, on the one hand, knowledge embeddedness within firms is the determinant of firms' preferences concerning training, while, on the other, labor market institutionalization provides the framework for workers' preferences. Applying a criterion of coherence between firm and worker incentives, two stable configurations are singled out. The former is shown to correspond to the Japanese model of training, while the latter conforms more to the German experience.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:wzbece:fsi00302
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    References listed on IDEAS

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    More about this item

    Keywords

    institutional complementarity; incentives; training; labor market institutions; company organization.;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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