By Isao Ohashi, Toshiaki Tachibanaki
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Additional resources for Internal Labour Markets, Incentives and Employment
Second, by measuring the bargaining level, it aims at a relatively well defined concept that has already found a place in economic analysis. Since the ranking developed by Blyth aims at the same target, we should not be surprised that the two measures are quite close. The scales by Schmitter and Cameron both concentrate on union structure, and the deviation between these scales and the CD scale indicates how the bargaining level characterisation may deviate from the union structure. Cameron's scale covers the same countries as CD's scale.
It is conceivable that the relation between corporatism and rate of return is asymmetric: corporatism may easily tolerate a decline, but strongly resist an increase. 7) indicates that the decrease in the college premium during the 1970s was strongest in countries where the labour force share of college educated increased fastest, but a reversed relation in the 1980s is not so easily observed. We conclude that frustration of supply and demand market forces on schooling in corporatist countries is in no way an established fact.
Competition sets a norm, wage flexibility in response to shifting supply and demand curves is a blessing. A given quality of labour commands the same equilibrium price everywhere, except for compensation for variations in the 'agreeableness or disagreeableness of the employments', as Adam Smith has taught us. The mode of transacting is represented by the mysterious auctioneer who is smart enough to find the equilibrium price before trading takes place. But perfect markets are not a perfect gift of nature, they have to be organised.