IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/110794.html
   My bibliography  Save this paper

The Old Institutional School and Labour Market Functions and Policies

Author

Listed:
  • Drakopoulos, Stavros A.
  • Katselidis, Ioannis

Abstract

The significant role of institutional and non-market factors in the functioning of an economic system was a core theme of the old institutional economists. They also criticised the narrow conception of economic welfare only in terms of efficiency and satisfaction of consumer interests. Instead, they focused on issues related to justice, human self-development and labourers’ welfare. Their conception of the labour market functions is an indicative example of the uniqueness of their approach. In contrast to the standard approach, labour market functioning does not depend only on the price mechanism, but is also affected by other key factors and parameters such as the social norms, several psychological factors and various labour institutions. This chapter seeks to examine and highlight the contribution of the old institutional economics towards labour market functions and policies. After presenting the origins and method of the School, it briefly compares old Institutionalism and early Neoclassical economics focusing on labour market issues. It also discusses the old institutional approach with respect to the collective action and labour market policy. The chapter concludes with Ross-Dunlop debate on labour unions and the case of minimum wages policy in order to emphasize the relevance of early institutional ideas in analysing contemporary labour market issues.

Suggested Citation

  • Drakopoulos, Stavros A. & Katselidis, Ioannis, 2021. "The Old Institutional School and Labour Market Functions and Policies," MPRA Paper 110794, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110794
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/110794/1/MPRA_paper_110794.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thorstein Veblen, 1909. "The Limitations of Marginal Utility," Journal of Political Economy, University of Chicago Press, vol. 17(9), pages 620-620.
    2. David Dequech, 2002. "The Demarcation between the "Old" and the "New" Institutional Economics: Recent Complications," Journal of Economic Issues, Taylor & Francis Journals, vol. 36(2), pages 565-572, June.
    3. Commons, John R., 1913. "Labor and Administration," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number commons1913.
    4. Stavros Drakopoulos, 2011. "The neglect of comparison income: An historical perspective," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 18(3), pages 441-464.
    5. Sumner H. Slichter, 1926. "The Worker in Modern Economic Society," Journal of Political Economy, University of Chicago Press, vol. 34(1), pages 100-100.
    6. Stavros Drakopoulos & Ioannis Katselidis, 2014. "The Development of Trade Union Theory and Mainstream Economic Methodology," Journal of Economic Issues, Taylor & Francis Journals, vol. 48(4), pages 1133-1149, December.
    7. Veblen, Thorstein, 1909. "The Limitations of Marginal Utility," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 17.
    8. Robert F. Hoxie, 1914. "Trade Unionism in the United States," Journal of Political Economy, University of Chicago Press, vol. 22(3), pages 201-201.
    9. Bruce E. Kaufman, 2003. "John R. Commons and the Wisconsin School on Industrial Relations Strategy and Policy," ILR Review, Cornell University, ILR School, vol. 57(1), pages 3-30, October.
    10. Bruce E. Kaufman, 2000. "The Early Institutionalists on Industrial Democracy and Union Democracy," Journal of Labor Research, Transaction Publishers, vol. 21(2), pages 189-209, April.
    11. Ioannis A. Katselidis, 2019. "Institutions, Policy and the Labour Market: The Contribution of the Old Institutional Economics," Economic Thought, World Economics Association, vol. 8, pages 13-30, December.
    12. Pemberton, James, 1988. "A 'Managerial' Model of the Trade Union," Economic Journal, Royal Economic Society, vol. 98(392), pages 755-771, September.
    13. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471, September.
    14. Ioannis A. Katselidis, 2016. "Unemployment and Labour Market Policy in British Economic Thought during the Late Victorian and Edwardian Era (1885–1914)," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 24(1), pages 57-82.
    15. Bruce E. Kaufman, 2010. "Institutional Economics and the Minimum Wage: Broadening the Theoretical and Policy Debate," ILR Review, Cornell University, ILR School, vol. 63(3), pages 427-453, April.
    16. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, October.
    17. Robert F. Hoxie, 1914. "Trade Unionism in the United States: The Essence of Unionism and the Interpretation of Union Types," Journal of Political Economy, University of Chicago Press, vol. 22(5), pages 464-464.
    18. Rees, Albert, 1976. "H. Gregg Lewis and the Development of Analytical Labor Economics," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 3-8, August.
    19. Leo Wolman, 1924. "The Growth of American Trade Unions, 1880-1923," NBER Books, National Bureau of Economic Research, Inc, number wolm24-1.
    20. Ioannis Katselidis, 2011. "Don Lescohier on Labor Market Policy: The Case of the United States After the First World War," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(4), pages 985-1010.
    21. Arturo Hermann, 2018. "The Decline of the 'Original Institutional Economics' in the Post-World War II Period and the Perspectives of Today," Economic Thought, World Economics Association, vol. 7(1), pages 63-86, March.
    22. Antoon Spithoven, 2019. "Similarities and Dissimilarities between Original Institutional Economics and New Institutional Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(2), pages 440-447, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Drakopoulos, Stavros A., 2024. "Non-orthodox Economic Approaches to Labor Unions and Union Leadership," MPRA Paper 119787, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ioannis A. Katselidis, 2019. "Institutions, Policy and the Labour Market: The Contribution of the Old Institutional Economics," Economic Thought, World Economics Association, vol. 8, pages 13-30, December.
    2. David Dequech, 2005. "Institutions: A Concept For A Theory Of Conformity And Innovation," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 174, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Stavros Drakopoulos & Ioannis Katselidis, 2014. "The Development of Trade Union Theory and Mainstream Economic Methodology," Journal of Economic Issues, Taylor & Francis Journals, vol. 48(4), pages 1133-1149, December.
    4. Angela Ambrosino, 2017. "The Role of Agents’ Propensity toward Conformity and Independence in the Process of Institutional Change," STOREPapers 1_2017, Associazione Italiana per la Storia dell'Economia Politica - StorEP.
    5. Noriko Ishida, 2021. "Thorstein Veblen on economic man: toward a new method of describing human nature, society, and history," Evolutionary and Institutional Economics Review, Springer, vol. 18(2), pages 527-547, September.
    6. Essiane, Patrick-Nelson Daniel, 2020. "De l'Ancienne Economie Institutionnelle à la Nouvelle Economie Institutionnelle: une introduction à quelques débats [Old Institutional Economics and New Institutional Economics: an Introduction to ," MPRA Paper 102858, University Library of Munich, Germany.
    7. Drakopoulos, Stavros A., 2024. "Non-orthodox Economic Approaches to Labor Unions and Union Leadership," MPRA Paper 119787, University Library of Munich, Germany.
    8. Vladislav Valentinov, 2012. "The Institutionalist Implications of the General Systems Theory: The Societal Role of the Market," Systems Research and Behavioral Science, Wiley Blackwell, vol. 29(3), pages 253-262, May.
    9. Dieter Bögenhold, 2008. "Economics, Sociology, History: Notes on Their Loss of Unity, Their Need for Re-integration and the Current Relevance of the Controversy between Carl Menger and Gustav Schmoller," Forum for Social Economics, Taylor & Francis Journals, vol. 37(2), pages 85-101, January.
    10. Blind, Georg, 2015. "Behavioural rules: Veblen, Nelson-Winter, Oström and beyond," MPRA Paper 66866, University Library of Munich, Germany.
    11. Annie Tubadji & Brian Osoba & Peter Nijkamp, 2015. "Culture-based development in the USA: culture as a factor for economic welfare and social well-being at a county level," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(3), pages 277-303, August.
    12. Naoise McDonagh, 2021. "Credit Guidance for a Desired Economy: An Original Institutional Economics Critique of Financialization," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 675-693, December.
    13. Atsebi, Jean-Marc Bédhat & Ferrer-i-Carbonell, Ada, 2022. "Relative deprivation in Tanzania: Relative concerns and empathy," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 389-408.
    14. Malcolm Rutherford, 2001. "Institutional Economics: Then and Now," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 173-194, Summer.
    15. Hager, Sandy Brian, 2013. "Public Debt, Ownership and Power: The Political Economy of Distribution and Redistribution," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 157991, January.
    16. Juan José García del Hoyo & Celeste Jiménez de Madariaga, 2015. "Teorías del valor: coincidencias y divergencias en la economía y la antropología social," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(33), pages 109-131, July-Dece.
    17. Maria Otil & Monica Boldea, 2015. "Regional Disparities – Historical Cultural Influences And Regional Development In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 74-83, August.
    18. Ferrer-i-Carbonell, Ada, 2005. "Income and well-being: an empirical analysis of the comparison income effect," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 997-1019, June.
    19. Senik, Claudia, 2004. "When information dominates comparison: Learning from Russian subjective panel data," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2099-2123, August.
    20. Tae-Hee Jo, 2021. "A Veblenian Critique of Nelson and Winter’s Evolutionary Theory," Journal of Economic Issues, Taylor & Francis Journals, vol. 55(4), pages 1101-1117, October.

    More about this item

    Keywords

    Institutional School; Economic Policy; Labour Policy; Labour Market Institutions;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:110794. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.