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Searching for the EU Social Dialogue Model

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Richard B. Freeman

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Abstract

The European Union and the United States operate different variants of market capitalism. The EU model uses social dialogue institutions to help determine economic outcomes, particularly in the labor market, whereas the US relies more on market forces. The theory of competitive markets provides a powerful framework for analyzing market driven economies and for assessing the conditions under which unfettered markets yield desirable outcomes. But there is no comparable framework for analyzing institution driven economies. This paper argues that models of efficient bargaining/the Coase Theorem offer the best framework for analyzing social dialogue economies and for identifying policies and institutional reforms to improve their functioning.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12306.

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Date of creation: Jun 2006
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Handle: RePEc:nbr:nberwo:12306

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  1. Hoffman, Elizabeth & Spitzer, Matthew L, 1982. "The Coase Theorem: Some Experimental Tests," Journal of Law & Economics, University of Chicago Press, vol. 25(1), pages 73-98, April.
  2. Matthew O. Jackson & Simon Wilkie, 2005. "Endogenous Games and Mechanisms: Side Payments Among Players," Review of Economic Studies, Blackwell Publishing, vol. 72(2), pages 543-566, 04. [Downloadable!] (restricted)
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  1. Hervé Boulhol, 2006. "Do capital market and trade liberalization trigger labor market deregulation ?," Cahiers de la Maison des Sciences Economiques bla06062, Université Panthéon-Sorbonne (Paris 1). [Downloadable!]
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