Avoiding Labor Shortages by Employer Signaling: On the Importance of Good Work Climate and Labor Relations
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.
Year of publication: |
2010
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Authors: | Backes-Gellner, Uschi ; Tuor, Simone N. |
Published in: |
Industrial and Labor Relations Review. - School of Industrial & Labor Relations, ISSN 0019-7939. - Vol. 63.2010, 2, p. 271-286
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Publisher: |
School of Industrial & Labor Relations |
Saved in:
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