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Labor Industrial Relations

Corporatism or Competition?: Labour Contracts, Institutions by Coen Teulings, Joop Hartog

By Coen Teulings, Joop Hartog

Corporatism or pageant? is worried with the significance of associations in identifying hard work marketplace results. there was loads of study some time past ten years evaluating salary ameliorations, salary routine and employment habit in numerous international locations, none of which has been introduced jointly in an geared up and coherent type. the purpose of this publication is to fill the space. The booklet is destined to turn into a typical paintings in exertions economics.

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Additional info for Corporatism or Competition?: Labour Contracts, Institutions and Wage Structures in International Comparison

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We should consider some aspects of the wage structure. For the United States, empirical research has revealed important differences in flexibility across groups of workers. First, the wages of new hires are much more sensitive to current market conditions than those of incumbent workers (Bils, 1985). More specifically, Beaudry and DiNardo (1991) (B&D) have shown that there is an asymmetry in the dynamic behaviour of wages. The incumbent workers are safeguarded from a deterioration of market conditions.

With these indexes, the outcome is quite manageable, in spite of all the differences in concepts and variables. While it may be useful to make an analytical distinction between centralization and corporatism, the two appear highly correlated. Austria and the Nordic countries are highly centralized, corporatist countries. The United States and Canada are decentralized, non-corporatist countries. Italy, the United Kingdom and France are in the middle, less centralized/corporatist than Germany. The Netherlands, Japan and Switzerland combine low-bargaining levels with high degrees of corporatism, through their particular ways of coordination and involvement in government decision making.

First, he has to give up his tenure (and hence protection from lay-off) at his present employer. Second, it will take him a longer tenure to achieve a similar degree of protection as he has achieved at his present employer. Although high rent industries are more attractive due to their high pay, there are compensating risks which reduce the queue of workers that try to get a job in these firms. Tenure profiles turn out to be an important mechanism for the extraction of rents. In the previous sections we argued that rent hopping is probably more important in decentralized than in corporatist economies.

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