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Avoiding Labor Shortages by Employer Signaling: On the Importance of Good Work Climate and Labor Relations


Backes-Gellner, U; Tuor, S N (2010). Avoiding Labor Shortages by Employer Signaling: On the Importance of Good Work Climate and Labor Relations. Industrial & Labor Relations Review, 63(2):271-286.

Abstract

Reversing the original signaling model, this study explains how employers signal the non-observable quality of their workplace and thereby reduce labor shortages. Based on a company data set of 204 German firms, the authors find, as predicted by their theory, that the existence of a works council, an apprenticeship training program, and a high-quality incumbent workforce significantly improves recruitment success because they all reliably signal appealing work places. At the same time, frequent hiring of workers with non-matching qualifications reduces recruitment success because it signals low-quality workplaces. The authors’ research reveals that certain aspects of labor relations and workplace characteristics exert a significant impact on recruitment success, which cannot be explained by conventional theoretical arguments.

Abstract

Reversing the original signaling model, this study explains how employers signal the non-observable quality of their workplace and thereby reduce labor shortages. Based on a company data set of 204 German firms, the authors find, as predicted by their theory, that the existence of a works council, an apprenticeship training program, and a high-quality incumbent workforce significantly improves recruitment success because they all reliably signal appealing work places. At the same time, frequent hiring of workers with non-matching qualifications reduces recruitment success because it signals low-quality workplaces. The authors’ research reveals that certain aspects of labor relations and workplace characteristics exert a significant impact on recruitment success, which cannot be explained by conventional theoretical arguments.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2010
Deposited On:27 Jan 2011 10:16
Last Modified:17 Feb 2018 17:39
Publisher:Cornell University IRL School
ISSN:0019-7939
OA Status:Closed
Publisher DOI:https://doi.org/10.1177/001979391006300205

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