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National Labour Relations in Internationalized MarketsA Comparative Study of Institutions, Change and Performance$
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Franz Traxler, Sabine Blaschke, and Bernhard Kittel

Print publication date: 2001

Print ISBN-13: 9780198295549

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295549.001.0001

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Concepts and Hypotheses

Concepts and Hypotheses

Chapter:
(p.213) 13 Concepts and Hypotheses
Source:
National Labour Relations in Internationalized Markets
Author(s):

Franz Traxler

Sabine Blaschke

Bernhard Kittel

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198295549.003.0013

In analysing the impact of labour relations, particularly on issues regarding efficiency, employment, inflation, and economic growth need to be considered. This approach however does not take the dual-link causality of the possible effects of labour relations on performance into account. The first chain in this dual-link considers how differences in the degrees of organization have corresponding differences in the ability to associate labour costs with economic requirements. The second chain, coming from mainstream economics, asserts how ‘excessive’ increases in wages result in a decrease in performance levels. Aside from using ‘technical’ controls to see effects exclusive to certain periods, four control variables — the monetary regime, trade-offs between employment and wages, the increasing exposure to competition in the world market, and real output growth — can be observed in testing the impact of labour relations on labour costs.

Keywords:   labour relations, dual-link causality, performance, labour costs, wages

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