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Searching for the EU Social Dialogue Model


  • Richard B. Freeman


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.

Suggested Citation

  • Richard B. Freeman, 2006. "Searching for the EU Social Dialogue Model," NBER Working Papers 12306, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:12306
    Note: LS POL

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    References listed on IDEAS

    1. Matthew O. Jackson & Simon Wilkie, 2005. "Endogenous Games and Mechanisms: Side Payments Among Players," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 543-566.
    2. Hoffman, Elizabeth & Spitzer, Matthew L, 1982. "The Coase Theorem: Some Experimental Tests," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 73-98, April.
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    Cited by:

    1. John Forth & Alex Bryson & Anitha George, 2016. "Explaining Cross-National Variation in Workplace Employee Representation," DoQSS Working Papers 16-10, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    2. Boulhol, Herv, 2009. "Do capital market and trade liberalization trigger labor market deregulation?," Journal of International Economics, Elsevier, vol. 77(2), pages 223-233, April.
    3. Richard Freeman, 2011. "New Roles for Unions and Collective Bargaining Post the Implosion of Wall Street Capitalism," Chapters,in: The Role of Collective Bargaining in the Global Economy, chapter 10 Edward Elgar Publishing.
    4. Giovanni Di Bartolomeo & Patrizio Tirelli & Nicola Acocella, 2008. "Trend inflation as a workers disciplining device in a general equilibrium model," Working Papers 142, University of Milano-Bicocca, Department of Economics, revised Jul 2008.
    5. Richard B. Freeman, 2007. "Labor Market Institutions Around the World," NBER Working Papers 13242, National Bureau of Economic Research, Inc.
    6. repec:hal:journl:halshs-00118951 is not listed on IDEAS
    7. Riccardo Leoni, 2013. "Organization of work practices and productivity: an assessment of research on world- class manufacturing," Chapters,in: Handbook of Economic Organization, chapter 17 Edward Elgar Publishing.
    8. Schmid, Günther & Modrack, Simone, 2008. "Employment dynamics in Germany: Lessons to be learned from the Hartz reforms," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2008-102, Social Science Research Center Berlin (WZB).
    9. Chatterji, Monojit, 2008. "Training hold up and social labour markets," Labour Economics, Elsevier, vol. 15(2), pages 202-214, April.
    10. Antonioli, Davide & Mazzanti, Massimiliano, 2017. "Towards a green economy through innovations: The role of trade union involvement," Ecological Economics, Elsevier, vol. 131(C), pages 286-299.

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    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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