Institutions and the Labor Market

Abstract

Describes an institutional approach to the labor market that focuses on the historical impact of owner-worker conflict on the institutions that shape the wage structure. It is argued that, because labor markets are highly differentiated institutional settings, there are wide differences in how employment relationships are institutionally centralized or decentralized. An examination of research on the effect of the centralization of industrial relations in contemporary capitalist labor markets indicated that centralization has aggregate-level consequences for income distribution & social welfare, & institutions filter the effect of external economic conditions & influence processes of collective action. Further, where class is highly institutionalized, labor markets are more likely to realize high employment levels, equality, & security from external economic shocks. Implications of these institutional effects are discussed, suggesting further research on the institutional conditions under which specific labor market processes function. 2 Tables, 1 Figure, 91 References. J. Lindroth