Trade Union and Labor Market Performance: Theoretical Implication for Industrial Relations Studies

Abstract

In this research, we elucidate the various theories demonstrating the associations between labor market structure and economic performance. As a result of this study, we found three important implications. Firstly, the comparative study of industrial relations, national systems of production and labor market institutions seems to be ready to ‘converge’ under the new perspectives of the institutional dynamism (varieties of capitalism). Second, Today’s industrial relations studies is marked by juxtapositions of two polar models of economic activities: deregulated vs institutionalized political economies; coordinated vs uncoordinated market economies. These converse concepts represent not only ideal-typical models of economic governance, they also serve as analytical devices to describe the dominant national models of economic governance in comparative empirical studies. So we need to explore the hybrid cases that are situated between or even depart from the two conceptual poles to develop new industrial relations theory. Thirdly, we find out varieties and similarity of modern capitalism, market mechanism and national economic performance. To solve the controversy of convergence or divergence and to break through the theoretical deadlock in the varieties of capitalism, we suggested the concept institutional isomorphism. It will give a way to solve the conflict trends of industrial relations studies. In short, the current stage indicates that the time for synthesis may now have come. Through this research, we understand that the comparative study of politics, industrial relations, national system of production today seems to be ready to ‘converge’ under the auspices of a new perspective, that of the ‘institutional dynamism’