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Current Issue: July 2009 (Vol. 62, No. 4)

ARTICLES

How Institutions and Business Strategies Affect Wages: A Cross-National Study of Call Centers. By Rosemary Batt and Hiroatsu Nohara. Vol. 62, No. 4 (July 2009), pp. 533-552.

Abstract: This paper, drawing on a 2003–2006 establishment-level survey of 1,819 call centers in 15 countries, examines effects of industrial relations institutions and employer strategies on wage variation across coordinated, liberal, and emerging market economies. The authors find several contradictory patterns, which confirm theoretical predictions for some countries and contradict them for others, suggesting diverse institutional reactions to the emergence of a new economic activity. Consistent with prior research, Denmark, France, and Sweden exhibit patterns of low wage dispersion and no union wage premium, and the United States, Canada, and emerging market economies exhibit quite high levels of dispersion. Contrary to prior research, Austria and Germany resemble the United States in their levels of wage dispersion, while the United Kingdom resembles the coordinated market group. Finally, employer strategies of outsourcing and market segmentation explain within-country wage variation in most countries, suggesting considerable flexibility in wage setting at the establishment level.

Technology, Selection, and Training in Call Centers. By Inge Sieben, Andries De Grip, Jessica Longen, and Ole Sørensen. Vol. 62, No. 4 (July 2009), pp. 553-572.

Abstract: This analysis of establishment-level call center survey data from 14 countries in 2003–2006 explores relationships among technology, selection, and training for both newly hired and more experienced workers. The findings suggest, consistent with the more generic literature, that information and communication technology (ICT) increased training investments. However, the effects on both training and informal learning in the first year differed by technology type. Workflow automation technologies had particularly strong influence on training demands for newly hired agents in call centers. In contrast, interaction automation technologies (such as interactive voice response and speech recognition) and enhanced interaction technologies (such as media blending, electronic customer relationship management, and web-enablement) only led to more ongoing training, and interaction automation technologies had a negative relationship with informal learning in the first year. The findings also suggest that call centers with high levels of ICT recruited a work force with higher returns to training.

Temporary Work in Coordinated Market Economies: Evidence from Front-Line Service Workplaces. By Karen A. Shire, Hannelore Mottweiler, Annika Schönauer, and Mireia Valverde. Vol. 62, No. 4 (July 2009), pp. 602-617.

Abstract: The growing use of temporary contracts in Europe raises the question of whether long-term employment relations are eroding in coordinated market economies, where protective regulations are historically strong. This paper, using data from establishment-level surveys conducted in 2003–2005, examines the institutional and organizational factors that have shaped the extent of use of temporary contracts in call centers in six European countries: Austria, Denmark, France, Germany, Spain, and Sweden. While differences in regulatory regimes appear to have influenced employer behavior in some cases, the exceptions are striking, as the countries with the most stringent restrictions on temporary workers were among the heaviest users of such workers. By contrast, firm-level strategies that retained work in-house and invested in work force skills and training were consistent predictors of the use of long-term contracts as opposed to temporary ones.

The Effects of Institutional and Organizational Characteristics on Work Force Flexibility: Evidence from Call Centers in Three Liberal Market Economies. By Danielle D. van Jaarsveld, Hyunji Kwon, and Ann C. Frost. Vol. 62, No. 4 (July 2009), pp. 573-601.

Abstract: This comparative study examines survey data from 464 call centers in the United States, 167 in the United Kingdom, and 387 in Canada to explore two questions: whether institutional differences shape employers’ choices of ways to improve work force flexibility, both numerical and functional; and whether strategies for numerical flexibility and functional flexibility are related. The results suggest that institutional differences across these liberal market economies---specifically, in dismissal regulations and union strength---did affect how employers chose to achieve work force flexibility. For example, the use of part-time workers was more common in countries with more stringent rules regulating dismissals. Organizational characteristics also mattered, with outsourced firms being more likely than in-house firms to use part-time workers. Evidence also suggests that managers used numerical flexibility and functional flexibility strategies as substitutes: higher employee job discretion was associated with both lower dismissal rates and a lower likelihood of temporary use.

The Effects of National Institutions and Collective Bargaining Arrangements on Job Quality in Front-Line Service Workplaces. By Virginia Doellgast, Ursula Holtgrewe, and Stephen Deery. Vol. 62, No. 4 (July 2009), pp. 489-509.

Abstract: This paper analyzes the relationships among national institutions, collective bargaining arrangements, and job quality in call center workplaces, using establishment-level survey data obtained in 2003–2006 in five European coordinated market economies (CMEs) (Austria, Denmark, France, Germany, and Sweden) and three liberal market economies (LMEs) (Canada, the United States, and the United Kingdom). Overall, the authors find lower dismissal rates, more use of high-involvement management practices, and less performance monitoring in the CMEs, consistent with the notion that national institutions can influence employment practices even in more poorly regulated service workplaces. However, workplace-level collective bargaining arrangements and in-house (compared to outsourced) status also were associated with significantly higher measures of job quality across countries. Findings suggest that within CMEs, dual union/works council representation continues to provide important support for job security, participation, and discretion, but that outsourcing can effect a partial escape from this institution.

The Globalization of Service Work: Comparative Institutional Perspectives on Call Centers: Introduction to a Special Issue of the Industrial & Labor Relations Review. By Rosemary Batt, David Holman, and Ursula Holtgrewe. Vol. 62, No. 4 (July 2009), pp. 453-488.

Abstract: This introduction to the special issue on the globalization of service work provides an overview of the call center sector and its development in coordinated, liberal market, and emerging market economies. The introduction’s authors situate this research in literature on the comparative political economy and industrial relations. Drawing on qualitative research and a unique survey of 2,500 establishments in 17 countries conducted in 2003–2006, they discuss the extent of convergence and divergence in management practices and employment relations. They also describe the research methodology for the overall research project, highlight its major findings, and summarize the contributions of the thematic papers covering several topics: unions’ role in shaping the quality of jobs; the factors that influence wage levels and wage inequality; the uses of contingent employment and their outcomes; the relationships among strategic human resource management, work design, and organizational outcomes; and the relationships among technology, selection, and training.

Work Design Variation and Outcomes in Call Centers: Strategic Choice and Institutional Explanations. By David Holman, Stephen Frenkel, Ole Sørensen, and Stephen Wood. Vol. 62, No. 4 (July 2009), pp. 510-532.

Abstract: This study examines reasons for variation in work design (defined by job discretion and performance monitoring) and how work design affects organizational outcomes. Drawing on a 2003–2006 survey of 2,359 call centers in 16 countries, the authors test strategic human resource management theory’s implication that firms’ strategic and operational contexts influence work design variation within countries, and “varieties of capitalism” theory’s implication that national institutional frameworks influence cross-country differences in work design. Results of a multi-level analysis indicate that job discretion was higher and performance monitoring less frequent when management strategy targeted business customers rather than mass market customers; when there was an emphasis on building customer relationships; and when the setting was a coordinated economy. Regarding organizational outcomes, job discretion was negatively associated with quit rates and labor costs, while monitoring was negatively associated with call abandonment rates and positively associated with quit rates and sales growth.

BOOK REVIEWS

Are Workers' Rights Human Rights? By Richard McIntyre Reviewed by Jeffrey Hilgert. Vol. 62, No. 4 (July 2009), pp. 618-619.

Black and Blue: African Americans, the Labor Movement, and the Decline of the Democratic Party. By Paul Frymer. Reviewed by Nancy MacLean. Vol. 62, No. 4 (July 2009), pp. 629-631.

Improving School-to-Work Transitions. Edited by David Neumark. Reviewed by Lars Lefgren. Vol. 62, No. 4 (July 2009), pp. 624-626.

Staircases or Treadmills? Labor Market Intermediaries and Economic Opportunity in a Changing Economy. By Chris Beener, Laura Leet, and Manuel Pastor Reviewed by Maria Guadalupe. Vol. 62, No. 4 (July 2009), pp. 619-620.

Striking a Balance: Work, Family, Life. By Robert W. Drago. Reviewed by Lonnie Golden. Vol. 62, No. 4 (July 2009), pp. 622-624.

The Analysis of Firms and Employees: Quantitative and Qualitative Approaches. Edited by Stefan Bender, Julia Lane, Kathryn L, Shaw, Fredrik Andersson, and Till von Wachter. Reviewed by Martin J. Conyon. Vol. 62, No. 4 (July 2009), pp. 631-633.

The Economics of Imperfect Labor Markets. By Tito Boeri and Jan van Ours. Reviewed by Darren Lubotsky. Vol. 62, No. 4 (July 2009), pp. 620-622.

The Good Temp. By Vicki Smith and Esther B. Neuwirth. Reviewed by Matt Vidal. Vol. 62, No. 4 (July 2009), pp. 626-628.

Why Is There No Labor Party in the United States? By Robin Archer Reviewed by Michael Huberman. Vol. 62, No. 4 (July 2009), pp. 628-629.