Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Robert McMaster; Michael J. White (2013)
Publisher: Oxford University Press
Journal: Cambridge Journal Of Economics
Types: Article
In 2009 Oliver Williamson was jointly awarded the Nobel Prize in Economics for his analysis of economic governance. Williamson was central to the emergence of the transaction cost framework as an important aspect of social scientific analysis. Part of this approach makes important efficiency predictions and prescriptions regarding the division of labour within firms in contemporary capitalist economies. This discounts issues of power and privileges 'firm-specific human assets' as the key organisational driver. Indeed, Williamson's approach intentionally conflates the employment relation with exchanges for 'intermediate' goods. This article seeks to investigate Williamson's explanatory claims through a UK-based panel dataset using a dynamic logit modelling approach. The findings question Williamson's central argument. The results, instead, are more consistent with the idea of the industry-specificity of labour and highlight the importance of firm size. Copyright , Oxford University Press.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • Baker, G., Gibbs, M. and Holmstrom, B. 1994. The internal economics of the firm: evidence from personnel data, Quarterly Journal of Economics, vol. 109, 881-919
    • Battu, H., McMaster, R. andWhite, M. J. 2002. An empirical investigation of OliverWilliamson's 'Organization of work', Applied Economics, vol. 34, 1657-69
    • Bingley, P. and Westergaard-Nielsen, N. 2003. Returns to tenure, firm-specific human capital and worker heterogeneity, International Journal of Manpower, vol. 24, 774-88
    • Bloom, N. and van Reenen, J. 2007. Measuring and explaining management practices across ifrms and countries, Quarterly Journal of Economics, vol. 122, 1351-408
    • Carroll, G. R. and Teece, D. J. (eds.) 1999. Firms, Markets and Hierarchies: The Transaction Cost Perspective, Oxford, Oxford University Press
    • Carter, R. and Hodgson, G. M. 2006.The impact of empirical tests of transaction cost economics on the debate on the nature of the firm, Strategic Management Journal, vol. 27, 461-76
    • Cavanagh, J. K., and Garen, J. 1997. Asset specificity, unionisation and the firm's use of debt, Managerial and Decision Economics, vol. 18, 255-69
    • Cooke, F.L., Shen, J. and McBride, A. 2005. Outsourcing HR as a competitive strategy? A literature review and an assessment of implications, Human Resource Management, vol. 44, 413-32
    • David, R. J. and Han, S.-K. 2004. A systematic assessment of the empirical support for transaction cost economics, Strategic Management Journal, vol. 25, 39-58
    • Dow, G. K. 1987. The function of authority in transaction cost economics, Journal of Economic Behavior and Organization, vol. 8, 13-38
    • Farber, H. S. 1999. Mobility and stability: the dynamics of job change in labor markets, in Ashenfelter, O. and Card, D. (eds.), Handbook of Labor Economics 3, 3, New York, Elsevier Science, 2439-83
    • Fleetwood, S. 2011. Sketching a socio-economic model of labour contracts, Cambridge Journal of Economics, vol. 35, 15-38
    • Ghoshal, S. and Moran, P. 1996. Bad for practice: a critique of the transaction cost theory, Academy of Management Review, vol. 21, 13-47
    • Gibbons, R. 2010. Transaction-cost economics: past, present, and future? Scandinavian Journal of Economics, vol. 112, 263-88
    • Greene, W. H. 2000. Econometric Analysis, 2nd ed. Englewood Cliffs, NJ, Prentice Hall
    • Hodgson, G. M. 2004. Opportunism is not the only reason why firms exist: why an explanatory emphasis on opportunism may mislead management strategy, Industrial and Corporate Change, vol. 13, 401-18
    • Jacoby, S. M. 1990.The new institutionalism: what can it learn from the old?, Industrial Relations, vol. 29, 316-59
    • Kay, N. M. 1992. Markets, false hierarchies, and the evolution of the modern corporation, Journal of Economic Behavior and Organization, vol. 17, 315-33
    • Knox, A. 2010. 'Lost in translation': an analysis of temporary work agency employment in hotels, Work, Employment and Society, vol. 24, 449-67
    • Lazear, E. P. and Shaw, K. L. 2007. Personnel economics: the economist's view of human resources, Journal of Economic Perspectives, vol. 21, 91-114
    • Lopes, H. 2011. Why do people work? Individual wants versus common goods, Journal of Economic Issues, vol. 45, 57-74
    • McMaster, R. 2008. Beware those offering 'gold standards': evidence-based medicine and the potential for institutional change, Journal of Economic Issues, vol. 42, 885-912
    • North, D. C. and Wallis, J. J. 1994. Integrating institutional change and technical change in economic history, Journal of Institutional and Theoretical Economics, vol. 150, 609-24
    • Ouchi, W. G. 1980. Markets, bureaucracies, and clans, Administrative Science Quarterly, vol. 25, 129-41
    • Rafael, R. and Zemsky, P. 2002. Social capital, corporate culture, and incentive intensity, RAND Journal of Economics, vol. 33, 243-57
    • Simon, H. A. 1997 [1947]. Administrative Behavior, 4th edi., New York, Free Press
    • Simon, H. A. 1991. Organizations and markets, Journal of Economic Perspectives, vol. 5, 25-44
    • Slaughter, S. A., Ang, S. and Boh, W. F. 2007. Firm-specific human capital and compensationorganizational tenure profiles: an archival analysis of salary data for IT professionals, Human Resource Management, vol. 46, 373-94
    • Spencer, D. A. 2000. The demise of radical political economy? An essay on the evolution of a theory of capitalist production, Cambridge Journal of Economics, vol. 24, 543-64
    • Spencer, D. A. 2009. The Political Economy ofWork, London, Routledge
    • Spencer, D. A. 2011. Getting personnel: contesting and transcending the 'new labour economics', Work, Employment and Society, vol. 25, 118-31
    • Williamson, O. E. 1975. Markets and Hierarchies: Analysis and Antitrust Implications, New York, Free Press
    • Williamson, O. E. 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, New York, Free Press
    • Williamson, O. E. 1993. Transaction cost economics and organisation theory, Industrial and Corporate Change, vol. 2, 107-56
    • Williamson, O. E. 1999. Revisiting legal realism: The law, economics, and organization, pp. 197-236 in Carroll, G. R. and Teece, T. J. (eds.), Firms, Markets, and Hierarchies: The Transaction Cost Economics Perspective, Oxford, Oxford University Press
    • Williamson, O. E. 2000. The new institutional economics: taking stock, looking ahead, Journal of Economic Literature, vol. 38, 595-613
    • Williamson, O. E. 2009. Transaction cost economics: the natural progression, Nobel Prize Lecture, available at http://nobelprize.org/nobel_prizes/economics/laureates/2009/williamson-lecture.html (date last accessed 6 June 2013)
    • Williamson, O. E., Wachter, M. L. and Harris, J. E. 1975. Understanding the employment relation: the analysis of idiosyncratic exchange, Bell Journal of Economics, vol. 6, 250-78
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article