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Volumn 40, Issue 2, 2008, Pages 164-196

Liberal market economy or composite regime? Institutional legacies and labor market policy in the United States

Author keywords

American political development; Comparative political economy; Constructionism; Labor market policy; State government policy

Indexed keywords


EID: 41849091099     PISSN: 00323497     EISSN: 17441684     Source Type: Journal    
DOI: 10.1057/palgrave.polity.2300096     Document Type: Article
Times cited : (8)

References (111)
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    • Institutionalists differ about what mechanisms explain lock-in. One excellent review is Paul Pierson, Politics in Time (Princeton: Princeton University Press, 2004).
    • Institutionalists differ about what mechanisms explain lock-in. One excellent review is Paul Pierson, Politics in Time (Princeton: Princeton University Press, 2004).
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    • A similar argument is inspired by the welfare economics of Mancur Olsen, The Rise and Decline of Nations (New Haven: Yale University Press, 1982), who argued that economic growth will slow as the population of interest groups increases and succeeds with burdensome claims on the state.
    • A similar argument is inspired by the welfare economics of Mancur Olsen, The Rise and Decline of Nations (New Haven: Yale University Press, 1982), who argued that economic growth will slow as the population of interest groups increases and succeeds with burdensome claims on the state.
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    • One thorough study of this claim found that if we are to look for the real influence of special interests, we need to examine specific interests at specific times in specific places in order to make conclusions about the outcomes for state policy: Virginia Gray and David Lowery, The Population Ecology of Interest Representation (Ann Arbor: University of Michigan Press, 1996), 241.
    • One thorough study of this claim found that "if we are to look for the real influence of special interests, we need to examine specific interests at specific times in specific places" in order to make conclusions about the outcomes for state policy: Virginia Gray and David Lowery, The Population Ecology of Interest Representation (Ann Arbor: University of Michigan Press, 1996), 241.
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    • Neo-classical models assume that market forces favor one most efficient policy set. Every government must broaden the scope for ungoverned individual action and decentralize bureaucracy, privatize public functions, reduce income support programs, and lower the cost of employment by deregulating employment conditions. The model does not depend on analysis of specific institutions or policies, but on the assumption that everyone responds similarly to similar forces. As institutionalists argue, the behavior of workers and employers is not fixed; it is ordered by institutions. See Hall and Soskice, Varieties of Capitalism.
    • Neo-classical models assume that market forces favor one most efficient policy set. Every government must broaden the scope for ungoverned individual action and decentralize bureaucracy, privatize public functions, reduce income support programs, and lower the cost of employment by deregulating employment conditions. The model does not depend on analysis of specific institutions or policies, but on the assumption that everyone responds similarly to similar forces. As institutionalists argue, the behavior of workers and employers is not fixed; it is ordered by institutions. See Hall and Soskice, Varieties of Capitalism.
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    • Sociologists and anthropologists have long focused on these issues. Pierre Bourdieu, Outline of a Theory of Practice (New York: Cambridge University Press, 1978).
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    • See the annual reviews by the OECD, Geneva: OECD
    • See the annual reviews by the OECD. For example, OECD Employment Outlook (Geneva: OECD, 1999).
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    • Cf. Margarita Estevez-Abe, Torben Iversen, and David Soskice, "Social Protection and the Formation of Skills: A Reinterpretation of the Welfare State," in Hall and Soskice, Varieties of Capitalism, 145-83.
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    • Sabel, "Learning by Monitoring," and Crouch and Farrell, "Breaking the Path." Compare Pepper Culpepper, Creating Cooperation: How Slates Develop Human Capital in Europe (Ithaca, NY: Cornell University Press, 2003), chapter one.
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    • There are many similar characterizations of the alternatives. The path-breaking statement is Michael Piore and Charles Sabel, The Second Industrial Divide (New York: Basic Books, 1984).
    • There are many similar characterizations of the alternatives. The path-breaking statement is Michael Piore and Charles Sabel, The Second Industrial Divide (New York: Basic Books, 1984).
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    • The Commission on the Skills of the American Workforce, Rochester, NY: National Center on Education and the Economy, June
    • The Commission on the Skills of the American Workforce, America's Choice: High Skills or Low Wages! (Rochester, NY: National Center on Education and the Economy, June 1990).
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    • Laying off employees is widespread in the U.S. even when the economy as a whole expands. In 2002 there were 15,000 lay-offs involving fifty or more employees. Wayne E Castro, Corporate Restructuring and the No-Layoff Payoff, Perspectives on Work 7 (2003): 4.
    • Laying off employees is widespread in the U.S. even when the economy as a whole expands. In 2002 there were 15,000 lay-offs involving fifty or more employees. Wayne E Castro, "Corporate Restructuring and the No-Layoff Payoff," Perspectives on Work 7 (2003): 4.
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    • Osterman's research shows American firms that are internally oriented do not always provide greater job security although they do other things according to prediction. Paul Osterman, Securing Prosperity (Princeton: Century Foundation and Princeton University Press, 1999).
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    • Community Colleges and Contract Training: Content, Origins, and Impact
    • February
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    • Wolfgang Streeck, Beneficial Restraints: On the Economic Limits of Rational Volunteerism, in Hollingsworth and Boyer, Contemporary Capitalism, 203. Soskice and Thelen et al. point out that employers have positive reasons to coordinate.
    • Wolfgang Streeck, "Beneficial Restraints: On the Economic Limits of Rational Volunteerism," in Hollingsworth and Boyer, Contemporary Capitalism, 203. Soskice and Thelen et al. point out that employers have positive reasons to coordinate.
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    • An overview of how outcome assessments were changing state strategies is Peter K. Eisinger, The Rise of the Entrepreneurial State: State and Local Economic Development Policy in the United States Madison: University of Wisconsin Press, 1988, 73-82
    • An overview of how outcome assessments were changing state strategies is Peter K. Eisinger, The Rise of the Entrepreneurial State: State and Local Economic Development Policy in the United States (Madison: University of Wisconsin Press, 1988), 73-82.
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    • Eisinger had direct involvement as a participant in the Wisconsin Strategic Development Commission. R. Scott Fosler, The New Economic Role of the American States (New York: Committee for Economic Development/Oxford University Press, 1988).
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    • Also see the many reports from the National Governors Association, The Progressive Policy Institute state policy benchmarks, ).Cfwww.neweconomyindex.org
    • Also see the many reports from the National Governors Association (www.nga.org). Cf. The Progressive Policy Institute state policy benchmarks (www.neweconomyindex.org).
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    • cited by Stone and Worgs, "Poverty and the Workforce Challenge," in Giloth, Workforce Development, 259.
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    • Fung and Zdrazil, "Ecologies of Workforce Development," in Giloth, Politics, 78f.
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    • But see Ronald Dore, New Forms and Meanings of Work in an Increasingly Globalized World (Geneva: International Institute for Labor Studies, International Labor Organization, 2004) and Peter Cappelli and David Neumark, External Job Churning and Internal Job Flexibility;' National Bureau of Economic Research Working Paper 811 l(February 2001).
    • But see Ronald Dore, "New Forms and Meanings of Work in an Increasingly Globalized World" (Geneva: International Institute for Labor Studies, International Labor Organization, 2004) and Peter Cappelli and David Neumark, "External Job Churning and Internal Job Flexibility;' National Bureau of Economic Research Working Paper 811 l(February 2001).
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    • (1992) Unions and Economie Competitiveness
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    • The OECD, Employment Outlook 1999, misses this variation because it treats the entire U.S. as a unit. See table 2.A.4., p. 100.
    • The OECD, Employment Outlook 1999, misses this variation because it treats the entire U.S. as a unit. See table 2.A.4., p. 100.
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    • Richard Edwards, Rights At Work (Washington, D.C.: 20th Century Fund, 1993).
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    • Divided We Fall
    • notes that inter-regional population shifts, gender and race also are correlated with recipiency rates
    • Wenger, "Divided We Fall", notes that inter-regional population shifts, gender and race also are correlated with recipiency rates.
    • Wenger1
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    • Labor market demand has become bifurcated: the fastest growing segment of the labor market is for low-skill, low-wage workers and the second fastest is for individuals with advanced degrees
    • Labor market demand has become bifurcated: the fastest growing segment of the labor market is for low-skill, low-wage workers and the second fastest is for individuals with advanced degrees.
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    • Brandon Roberts+ Associates, Working Poor Families: A State-Level Assessment of Conditions and Policies Encouraging Economic Self- Sufficiency (unpublished). Giloth, Workforce Development Politics, 9-10.
    • Brandon Roberts+ Associates, "Working Poor Families: A State-Level Assessment of Conditions and Policies Encouraging Economic Self- Sufficiency" (unpublished). Giloth, Workforce Development Politics, 9-10.
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    • Early implementation was more telling because across all states the one-stop ideal remains rare. David Hage, Purgatory of the Working Poor, The American Prospect (September 2004): A5.
    • "Early implementation" was more telling because across all states "the one-stop ideal remains rare." David Hage, "Purgatory of the Working Poor," The American Prospect (September 2004): A5.
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    • Maria Buck, "Charting New Territory: Early Implementation of the Workforce Investment Act" (Public/Private Ventures, January 2002), 29. National Governors' Association, "A Governor's Guide to Creating a 21st Century Workforce" (Washington, D.C.: National Governors' Association, 2002), 31. See the U.S. Department of Labor's state reports on WlA performance at doleta.gov/performance/ and at CLASP (Center for Law and Policy www.clasp.org.), "State-by-State WIA Program Participation Data".
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    • 138, reports that 37.8 percent of all post-secondary enrolments were in community colleges in, double the proportion of
    • Osterman, Securing Prosperity 138, reports that 37.8 percent of all post-secondary enrolments were in community colleges in 1992, double the proportion of 1972.
    • (1972) Securing Prosperity
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    • Kevin J. Dougherty and Marianne E Bakia, The New Economic Development Role of the Community College (Columbia University: Community College Resource Center, Brief *6, January 2000).
    • Kevin J. Dougherty and Marianne E Bakia, "The New Economic Development Role of the Community College" (Columbia University: Community College Resource Center, Brief *6, January 2000).
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    • Thomas R. Bailey, Community Colleges in the 21st Century: Challenges and Opportunities (Columbia University: Community College Resource Center, Brief #15, January 2003).
    • Thomas R. Bailey, "Community Colleges in the 21st Century: Challenges and Opportunities" (Columbia University: Community College Resource Center, Brief #15, January 2003).
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    • Stuart A. Rosenfeld, Business Clusters in America: Strategies and Synergies (Paris: OECD, 1995). The Center for Regional Innovation partners with the U.S. Commerce Department Economic Development Administration to urge states to focus on industry clusters, www.compete.org/publications/ clusters_reports.asp National Governors' Association, A Governor's Guide to Cluster-Based Economic Development (Washington, DC: National Governors' Association, 2002). Mark Elliott et al., Gearing Up: An Interim Report on the Sectoral Employment Initiative (Public/Private Ventures, September 2001).
    • Stuart A. Rosenfeld, "Business Clusters in America: Strategies and Synergies" (Paris: OECD, 1995). The Center for Regional Innovation partners with the U.S. Commerce Department Economic Development Administration to urge states to focus on industry clusters, www.compete.org/publications/ clusters_reports.asp National Governors' Association, "A Governor's Guide to Cluster-Based Economic Development" (Washington, DC: National Governors' Association, 2002). Mark Elliott et al., "Gearing Up: An Interim Report on the Sectoral Employment Initiative" (Public/Private Ventures, September 2001).
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    • U.S. Department of Education, National Center for Education Statistics, Frank B. Morgan, Degrees and Other Awards Conferred by Title IV Participating, Degree-granting Institutions, 1997-98, NCES 2001-177 (Washington, DC: U.S. Department of Education, 2000). The renewed focus on industry cluster or district policy strategy reinforces the preference for case analysis rather than system-level statistical analysis. See the National Governors' Association and reports by Regional Technology Strategies at rtsinc.org. Education Commission of the States, State Funding for Community Colleges: A 50-State Survey (Denver: November 2000), 10, 29, 43-52.
    • U.S. Department of Education, National Center for Education Statistics, Frank B. Morgan, "Degrees and Other Awards Conferred by Title IV Participating, Degree-granting Institutions, 1997-98", NCES 2001-177 (Washington, DC: U.S. Department of Education, 2000). The renewed focus on industry cluster or district policy strategy reinforces the preference for case analysis rather than system-level statistical analysis. See the National Governors' Association and reports by Regional Technology Strategies at rtsinc.org. Education Commission of the States, "State Funding for Community Colleges: A 50-State Survey" (Denver: November 2000), 10, 29, 43-52.
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    • The greatest concern reported by states in one study in 1986 was declining industries, which led to a variety of strategies to strengthen manufacturing, among other policies. Marianne K. Clarke, Revitalizing State Economies (Washington, D. C.: National Governor's Association, 1986).
    • The greatest concern reported by states in one study in 1986 was declining industries, which led to a variety of strategies to strengthen manufacturing, among other policies. Marianne K. Clarke, Revitalizing State Economies (Washington, D. C.: National Governor's Association, 1986).
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    • Piore and Sabel, Second Industrial Divide, 85.
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    • The networks were more than partisan defenders of the status quo. In response to industrial restructuring, many groups appeared to formulate socially responsive change, such as the Federation for Industrial Retention and Renewal. In response to welfare policy devolution, supporters launched projects to organize groups to gain new state-level commitments to social policy For example, the Ford Foundation's devolution project, the Annie E. Casey projects that are the subject of Giloth, Workforce Development Politics, the Urban Institute's new federalism research project, and the Economic Policy Institute's Economic Analysis and Research Network (EARN, Reaganite conservatives organized the State Policy Network and the Family Policy Councils, among others. Frederick Clarkson, Takin' It to the States: The Rise of Conservative State-Level Think Tanks. The Public Eye, 13 Summer/Fall 1999, 1-13
    • The networks were more than partisan defenders of the status quo. In response to industrial restructuring, many groups appeared to formulate socially responsive change, such as the Federation for Industrial Retention and Renewal. In response to welfare policy devolution, supporters launched projects to organize groups to gain new state-level commitments to social policy For example, the Ford Foundation's devolution project, the Annie E. Casey projects that are the subject of Giloth, Workforce Development Politics, the Urban Institute's new federalism research project, and the Economic Policy Institute's Economic Analysis and Research Network (EARN). Reaganite conservatives organized the State Policy Network and the Family Policy Councils, among others. Frederick Clarkson, "Takin' It to the States: The Rise of Conservative State-Level Think Tanks." The Public Eye, 13 (Summer/Fall 1999): 1-13.
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    • Bruce Colburn, Milwaukee Labor Council, "New Coalition Plans for 50,000 Jobs," FIRR News 6 (Spring 1994): 10-11,
    • (1994) FIRR News
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    • Fung and Zdrazil, Ecologies of Workforce Development In Milwaukee, In Giloth, Workforce Development Politics, 75-101.
    • Fung and Zdrazil, "Ecologies of Workforce Development In Milwaukee," In Giloth, Workforce Development Politics, 75-101.
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    • for a discussion of the ease of school integration in Charlotte, North Carolina. Cf. Michelle Brattain, The Pursuits of Post-exceptionalism: Race, Gender, Class, and Politics in the New Southern History in Labor in the Modern South, ed. Glenn T. Eskew (Athens: University of Georgia Press, 2001), 1-46.
    • for a discussion of the ease of school integration in Charlotte, North Carolina. Cf. Michelle Brattain, "The Pursuits of Post-exceptionalism: Race, Gender, Class, and Politics in the New Southern History" in Labor in the Modern South, ed. Glenn T. Eskew (Athens: University of Georgia Press, 2001), 1-46.
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    • Much of the policy debate in southern (and northern) states was about coordinating the transition to high technology and services. Some states have gone further than others and there is still policy diversity within the states. Shaila Dewan, Google Is Reviving Hopes for ExFurniture Makers, THe New York Times (March 15, 2007), reports that the two leading North Carolina newspapers scorned the subsidies that a western county gave to Google to open a service center. An indicator of the policy debate concerns performance measures for state subsidies and the inclusion of clawback provisions to recover them when firms do not deliver the amount and quality of jobs promised.
    • Much of the policy debate in southern (and northern) states was about coordinating the transition to high technology and services. Some states have gone further than others and there is still policy diversity within the states. Shaila Dewan, "Google Is Reviving Hopes for ExFurniture Makers," THe New York Times (March 15, 2007), reports that the two leading North Carolina newspapers scorned the subsidies that a western county gave to Google to open a service center. An indicator of the policy debate concerns performance measures for state subsidies and the inclusion of "clawback" provisions to recover them when firms do not deliver the amount and quality of jobs promised.


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