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Economic populism and institutional changes in wage–labor relations

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  • Emre Ünal

    (Firat University)

Abstract

John R. Commons emphasized the legislative role of governments in wage–labor relations, which instituted collective bargaining for labor organizations. Hence, workers largely abandoned ideas of cooperative production and socialism. This represented an institutional change in the balance power between the working class and industries. The present work discusses the case of the Turkish economy. When wage–labor relations were institutionalized in the 1960s, a strong bond between the working class and the government was established. The institutionalization of the wage–labor relationship gave considerable power to the working class, which in turn influenced government’s economic policies. This was the birth of economic populism. This institutionalization became a major obstacle to economic stability and caused a deep path dependency that resulted in chronic inflation and unstable exchange rates for decades.

Suggested Citation

  • Emre Ünal, 2021. "Economic populism and institutional changes in wage–labor relations," Evolutionary and Institutional Economics Review, Springer, vol. 18(2), pages 407-433, September.
    • Handle: RePEc:spr:eaiere:v:18:y:2021:i:2:d:10.1007_s40844-021-00219-z
    DOI: 10.1007/s40844-021-00219-z
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    More about this item

    Keywords

    Economic populism; Input–output analysis; Institutional changes; Path dependency; Turkey;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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