This is a study of how work establishments form ties with other organizations in order to recruit and train workers. Using a national sample of work establishments, stratified by size, in a two-wave panel, questions will be asked about how those firms rely on outside organizations for labor contracting and job training. Hypotheses tested deal with the effects of stable organizational environments, tight labor markets, the role of labor unions, and the institutionalization of common practices in labor contracting and job training. By relying on a network perspective to determine how links with recruiting and contracting organizations shape individual firm decisions, this research makes a theoretical contribution that sets it apart from two prevailing views. In one, there is the assumption that labor costs are entirely external to the firm, and thus dependent on market relations. In the other, there is the contrary assumption that labor costs are entirely internal and therefore subject only to hierarchical relations. Instead, these researchers look at interorganizational networks as the basis of change within firms. %%% This research addresses fundamental questions about how changes in the formation of human capital may be taking place when employers establish ties with outside organizations for the recruitment and training of workers. It will demonstrate how the characteristics of network relations between employers and their sources of labor recruitment and training affect the the employing firms and the opportunities available to their workers. Research findings will have major implications for understanding how cost and quality are affected by these recruitment and training practices.
