The four types of employment systems shape skills and labour market structures according to the degree of functional flexibility in work assignments and whether firm internal labour markets or occupational labour markets prevail. Both of these depend on a different type of institutional support because of different collective action problems. The chapter also shows how the theory can be applied to monopsony in secondary labour markets, and to recent developments in ‘market‐mediated’ employment forms.
Keywords: collective action; employment system; functional flexibility; internal labour market; market‐mediated employment; monopsony; occupational labour market; secondary labour market; skills
Chapter. 14431 words. Illustrated.
Subjects: Macroeconomics and Monetary Economics
Full text: subscription required