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Labour regulation, corporate governance and legal origina: a case of institutional complementarity?


  • Simon Deakin
  • Beth Ahlering


We explore the finding of La Porta et al. that differences in Ôlegal originÕ account for part of cross-national diversity in labour regulation and corporate governance. We suggest that the finding needs a better historical grounding and that a mechanism which might explain it has not been adequately spelled out. In search of an explanation we focus on the role of complementarities between legal and economic institutions, and in particular the part played by the distinctive Ôlegal culturesÕ of the common law and civil law in setting national systems on separate pathways to economic development.

Suggested Citation

  • Simon Deakin & Beth Ahlering, 2005. "Labour regulation, corporate governance and legal origina: a case of institutional complementarity?," Working Papers wp312, Centre for Business Research, University of Cambridge.
  • Handle: RePEc:cbr:cbrwps:wp312
    Note: PRO-2

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    References listed on IDEAS

    1. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    2. Smith, Suzanne Konzelmann, 1995. "Internal Cooperation and Competitive Success: The Case of the U.S. Steel Minimill Sector," Cambridge Journal of Economics, Oxford University Press, vol. 19(2), pages 277-304, April.
    3. Catherine Truss, 2001. "Complexities and Controversies in Linking HRM with Organizational Outcomes," Journal of Management Studies, Wiley Blackwell, vol. 38(8), pages 1121-1149, December.
    4. Wilkinson, Frank, 1983. "Productive Systems," Cambridge Journal of Economics, Oxford University Press, vol. 7(3-4), pages 413-429, September.
    5. Michael J. Handel & Maury Gittleman, 1999. "Is There a Wage Payoff to Innovative Work Practices?," Economics Working Paper Archive wp_288, Levy Economics Institute.
    6. Suzanne Konzelmann & Frank Wilkinson & Maria Hudson, 2002. "Partnership in Practice," Working Papers wp239, Centre for Business Research, University of Cambridge.
    7. Frank Wilkinson, 2002. "Productive Systems and the Structuring Role of Economic and Social Theories," Working Papers wp225, Centre for Business Research, University of Cambridge.
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    Cited by:

    1. Andrei Emil MOISE & Gabriela Ioana ROSCA, 2014. "Employees’ Rights In The Corporate Governance Context," "Perspectives of Business Law” Journal, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 3(1), pages 284-293, December.

    More about this item


    legal origin; complementarities; legal cultures; labour law; corporate governance.;

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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