Overview
Aims and objectives
This project was an ESRC post-doctoral research fellowship held by Colm McLaughlin, with Simon Deakin acting as mentor. The purpose of the fellowship was, inter alia, to enable Dr McLaughlin to develop and disseminate findings from his PhD thesis and to further his career development through participation in related CBR-based research. The thesis explored the relationship between economic efficiency and labour market equity from an institutional comparative perspective and addressed the question of whether institutions and regulations which address issues of equity for low-paid workers can be part of an integrated competitive national strategy. While the market-led approach views labour market regulations and institutions as ‘rigidities’ which reduce flexibility and distort efficiency, an institutional approach recognises the role they can play in enhancing long-run dynamic efficiency.
Drawing on the experiences of three small economies – Denmark, Ireland and New Zealand – over the past 25 years, the study shows that the relationship between efficiency and equity is complex and certain institutional mechanisms play vital economic functions. In particular, institutions for building and maintaining cooperation and coordination prove important for providing consensus, stability and the public goods essential for building a high-wage, high-productivity economy, while also promoting important social outcomes. The study also looked at the nature of institutional change and the extent to which the social partners can innovate and develop new institutional structures for cooperation and coordination. While change is possible, significant ideological divisions prevent new institutional forms from becoming deeply embedded.
Project leader
Colm McLaughlin
Project dates
2006-2007
Funding
ESRC