The Paradox of Liberalization — Understanding Dualism and the Recovery of the German Political Economy

Abstract

What do the recent trends in German economic development convey about the trajectory of change? Has liberalization prepared the German economy to deal with new challenges? What effects will liberalization have on the co‐ordinating capacities of economic institutions? This article argues that co‐ordination and liberalization are two sides of the same coin in the process of corporate restructuring in the face of economic shocks. Firms seek labour co‐operation in the face of tighter competitive pressures and exploit institutional advantages of co‐ordination. However, tighter co‐operation with core workers sharpened insider–outsider divisions and were built upon service sector cost cutting through liberalization. The combination of plant‐level restructuring and social policy change forms a trajectory of institutional adjustment of forming complementary economic segments which work under different rules. The process is driven by producer coalitions of export‐oriented firms and core workers’ representatives, rather than by firms per se.

Establishments’ use of temporary agency workers: the influence of institutions and establishments’ employment strategies

“…Indeed, recent labour-market developments have led to a bifurcation in the status of those employees on full-time contracts and those on more precarious contracts in organizations in some collaborative business systems (Allen and Whitley, 2012;Hassel, 2014;cf. Brewster et al, 2007).…”

“…Brewster et al, 2007). In these business systems, 'producer coalitions' of export-focused firms and core-worker representatives may drive a process that results in the increased use of temporary agency workers in order to increase productivity and enhance competitiveness (Allen and Whitley, 2012;Hassel, 2014). Drawing on these recent theoretical and empirical developments, we put forward a proposition that contrasts with P3: P4: Establishments in collaborative business systems will be more likely than those in compartmentalized business systems to use temporary workers in order to overcome the institutional constraints associated with permanent employees.…”

Do not say a word! Conceptualizing employee silence in a long-term crisis context

“…Hassel, 2014;Heyes, Lewis & Clark, 2012;Lallement, 2011). There has been a particular interest on how European peripheral economies responded to crisis, considering the impact on their debt and banking systems (Tsolacos, 2014).…”

Beyond National Systems, Towards a ‘Gig Economy’? A Research Agenda for International and Comparative Employment Relations

“…The growth in private-service sector employment is arguably producing a transformational shift in the post-1945 'German model' of employment relations (Bechter et al 2012;Hassel 2014). More generally, this trend illustrates the extent to which sectoral issues, such as the mix of industries in a particular national economy, can influence the strategic choices of ER actors independently of nationallevel institutional arrangements.…”