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Varieties of CapitalismThe Institutional Foundations of Comparative Advantage$
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Peter A. Hall and David Soskice

Print publication date: 2001

Print ISBN-13: 9780199247752

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199247757.001.0001

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Business, Government, and Patterns of Labor Market Policy in Britain and the Federal Republic of Germany

Business, Government, and Patterns of Labor Market Policy in Britain and the Federal Republic of Germany

Chapter:
(p.247) 7 Business, Government, and Patterns of Labor Market Policy in Britain and the Federal Republic of Germany
Source:
Varieties of Capitalism
Author(s):

Stewart Wood

Publisher:
Oxford University Press
DOI:10.1093/0199247757.003.0007

Explores the connection between the political economy and the public policies that governments produce, using the cases of labour market policy in the 1980s in West Germany and the UK. Governments will favour policies that reinforce the comparative institutional advantage of their economic institutions, because policy options are constrained by the different organizational capacities of employers in CMEs and LMEs. It examines the constitutional and political sources of state power in the Federal Republic and UK, a contrast that suggests significant variation in the expected stability of the two labour market policy regimes. Business–government relations and public policies are therefore systematically correlated with varieties of capitalism, as also a function of broader political arrangements that may vary ‘across type’.

Keywords:   business–government relations, comparative institutional advantage, Germany, labour market, political arrangements, public policy, United Kingdom

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