Political economy of labor market institutions in a globalised era

Sumon Bhaumik, Richard Frensch and Stephan Huber

No 391, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)

Abstract: The paper extends the literature on the political economy of labor market institutions by developing a framework in which owners of capital can benefit from both greater labor 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 labor market flexibility. It follows that where owners of capital are better placed to influence government choices of these institutions, labor market flexibility is influenced by both labor 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: Labor market institutions; Political economy; Globalisation (search for similar items in EconPapers)
JEL-codes: D72 J41 (search for similar items in EconPapers)
Pages: 29
Date: 2021-06
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.dokumente.ios-regensburg.de/publikationen/wp/wp_391.pdf (application/pdf)

Related works:
Working Paper: Political Economy of Labour 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:ost:wpaper:391

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies) Contact information at EDIRC.
Bibliographic data for series maintained by Kseniia Gatskova ( this e-mail address is bad, please contact ).