Political Economy of Labour Market Institutions in a Globalised Era

Sumon Bhaumik, Richard Frensch () and Stephan Huber
Additional contact information
Richard Frensch: University of Regensburg

No 14121, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper extends the literature on the political economy of labour market institutions by developing a framework in which owners of capital can benefit from both greater labour market flexibility and better rule of law. Their choice of location of manufacturing centres can, therefore, by influenced both by reduction in expropriation that is associated with better rule of law and greater bargaining power vis-à-vis workers by way of greater labour market flexibility. It follows that where owners of capital are better placed to influence government choices of these institutions, labour market flexibility is influenced by both labour market institutions intensity of exports and as well as rule of law intensity of exports. These predictions are borne out by a cross-country empirical analysis.

Keywords: labour market institutions; political economy; globalisation (search for similar items in EconPapers)
JEL-codes: D72 J41 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2021-02
New Economics Papers: this item is included in nep-pke and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp14121.pdf (application/pdf)

Related works:
Working Paper: Political economy of labor market institutions in a globalised era (2021)
Working Paper: Political economy of labour market institutions in a globalised era (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp14121

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().