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Labor Migration as a Source of Institutional Change: Danish and Australian Construction Sectors Compared

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  • Jens Arnholtz
  • Chris F. Wright

Abstract

In this article, the authors examine the role of labor immigration as a source of institutional change. They use a “most different systems†comparative case study analysis of the Danish and Australian construction sectors to examine the impact of increased labor migration on skill-sourcing practices in countries with distinct national skill formation and industrial relations institutions. Drawing on 73 interviews with industry stakeholders, the authors find that labor migration has produced liberalizing pressures in both Denmark and Australia, albeit in ways that differ from each other. The article contributes to comparative institutional scholarship by illustrating how labor migration can promote or support institutional change in a liberalizing direction by disincentivizing coordinated skill formation. Findings suggest that while national institutions mediate external pressures, such as labor migration, such pressures may affect the incentive structures that can either maintain or erode national institutions.

Suggested Citation

  • Jens Arnholtz & Chris F. Wright, 2023. "Labor Migration as a Source of Institutional Change: Danish and Australian Construction Sectors Compared," ILR Review, Cornell University, ILR School, vol. 76(3), pages 532-555, May.
    • Handle: RePEc:sae:ilrrev:v:76:y:2023:i:3:p:532-555
    DOI: 10.1177/00197939231153138
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    References listed on IDEAS

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    1. Stephen Clibborn, 2015. "Why undocumented immigrant workers should have workplace rights," The Economic and Labour Relations Review, , vol. 26(3), pages 465-473, September.
    2. Ines Wagner & Nathan Lillie, 2014. "European Integration and the Disembedding of Labour Market Regulation: Transnational Labour Relations at the European Central Bank Construction Site," Journal of Common Market Studies, Wiley Blackwell, vol. 52(2), pages 403-419, March.
    3. Stephen Clibborn & Chris F Wright, 2018. "Employer theft of temporary migrant workers’ wages in Australia: Why has the state failed to act?," The Economic and Labour Relations Review, , vol. 29(2), pages 207-227, June.
    4. Chris Howell, 2021. "Rethinking the Role of the State in Employment Relations for a Neoliberal Era," ILR Review, Cornell University, ILR School, vol. 74(3), pages 739-772, May.
    5. Jens Arnholtz & Søren Kaj Andersen, 2018. "Extra†Institutional Changes under Pressure from Posting," British Journal of Industrial Relations, London School of Economics, vol. 56(2), pages 395-417, June.
    6. Chris F. Wright, 2012. "Immigration policy and market institutions in liberal market economies," Industrial Relations Journal, Wiley Blackwell, vol. 43(2), pages 110-136, March.
    7. Ines Wagner, 2015. "Rule Enactment in a Pan-European Labour Market: Transnational Posted Work in the German Construction Sector," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 692-710, December.
    8. Richard M. Locke & Kathleen Thelen, 1995. "Apples and Oranges Revisited: Contextualized Comparisons and the Study of Comparative Labor Politics," Politics & Society, , vol. 23(3), pages 337-367, September.
    9. Phillip Toner, 2000. "Changes in Industrial Structure in the Australian Construction Industry: Causes and Implications," The Economic and Labour Relations Review, , vol. 11(2), pages 291-307, December.
    10. Chris F Wright & Stephen Clibborn, 2020. "A guest-worker state? The declining power and agency of migrant labour in Australia," The Economic and Labour Relations Review, , vol. 31(1), pages 34-58, March.
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    Cited by:

    1. Chris F. Wright & Colm McLaughlin, 2024. "Short‐term fix or remedy for market failure? Immigration policy as a distinct source of skills," Industrial Relations Journal, Wiley Blackwell, vol. 55(1), pages 3-19, January.
    2. Jens Arnholtz & Ståle Østhus, 2024. "Is labour migration disrupting dual vocational education and training systems? Empirical evidence from the Danish and Norwegian construction sectors," European Journal of Industrial Relations, , vol. 30(3), pages 245-263, September.

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