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This paper investigates the effects of migration and work experience on university-to-work transitions of German university graduates. We use a job search model, signaling and social network theory to discuss different links between the duration of labor market entry, graduate mobility and work experience. We apply event history analyses and make use of administrative social security records to examine whether work experience and pre-study as well as post-study migration accelerates the labor market entry of graduates. Our regression results stress the importance of both mobility and work experience for the length of the transition period. However, whether the effect is beneficial or adverse depends on the type of graduate migration and previous employment.

Twelve qualitative case studies in German and Canadian hospitals and IT companies were used in this mixed-methods study analysing the labour market outcomes of immigrants. The reported case studies investigate the immigrants' recognition, integration process and the usability of foreign qualifications, skills and work experiences in the labour market. Furthermore, the strategies and rationales of employers and employees within the recruiting process are analysed. Here, the focus lies on the transferability and obstacles of cultural and social capital across country borders as well as the relevant framework conditions. This paper refers to Bourdieu's approach towards different types of capital as well as the rational choice theory. The results demonstrate that immigrants in both countries face more obstacles accessing the labour market within the health sector than within the IT sector. The context of the recruiting situation strongly affects the strategies and behaviour of the employers or the recruiters. Within these sector- and country-specific confines, individual factors determine the immigrants' labour market success. Furthermore, the sector and the country affect the relevance of each individual factor in the recruiting process.

Previous research has shown that temporary employment is negatively associated with many psychological and job-related outcomes, such as well-being, health, wages, organisational commitment, and job satisfaction. Among recent doctoral graduates, the proportion of temporary contracts is particularly high. However, research on the association between contract type and job satisfaction specifically among doctoral graduates is scarce. Therefore, whether and how obtaining permanent employment affects doctoral graduates' job satisfaction remains a notable research gap that we intend to narrow by using panel data from a recent doctoral graduation cohort and by adopting a panel research design. We examine what effect obtaining permanent employment has on doctoral graduates' job satisfaction and whether this effect differs by labour market sector. We use panel data that are representative of the 2014 doctoral graduation cohort in Germany and their career trajectories up to five years after graduation. We apply fixed-effects regression to approximate the within-effect of obtaining a permanent employment contract on job satisfaction. The analyses indicate that obtaining permanent employment increases doctoral graduates' job satisfaction and that this increase is not driven by time-varying confounders. We also find that doctoral graduates' labour market sector moderates the effect: the increase in job satisfaction is highest in the academic sector and statistically significantly different from that in the private sector. Overall, this paper offers new insights into the effect of obtaining a permanent contract on the job satisfaction of recent doctoral graduates throughout their first years after graduation, when they are often employed on temporary contracts.

In light of a global higher education expansion, the paper analyses the historic-structural conditions of this development for the German state(s) after World War II. Building on Talcott Parsons citizenship patterns, the analysis centres on two core institutions of the German higher education system: the state-organized system of entitlement ("Berechtigungswesen") and the civil right for access to higher education. The entitlement system established a unique form of vertical and horizontal correspondence between higher education and the labour market. It allowed for a successful transition from university to work ("academization"). As a state monopoly, it also hampered rapid expansion. The civil right to access mediated and restricted efforts to constrain the expansion in Western Germany. Its absence in Eastern Germany lead to contractions after political will changed. A large part of the post-World War II expansion in Germany can be explained through the interplay of the two core institutions. The partial dismantling of the entitlement system after 1998, has led to severe degree differentiation and change. Yet so far, employment fields still consistently adapt to the credential pressure from the expanding public research university.

Ample evidence indicates that a person's human capital is important for success on the labor market in terms of both wages and employment prospects. However, unlike the efforts to identify the impact of school attainment on labor-market outcomes, the literature on returns to cognitive skills has not yet provided convincing evidence that the estimated returns can be causally interpreted. Using the PIAAC Survey of Adult Skills, this paper explores several approaches that aim to address potential threats to causal identification of returns to skills, in terms of both higher wages and better employment chances. We address measurement error by exploiting the fact that PIAAC measures skills in several domains. Furthermore, we estimate instrumental-variable models that use skill variation stemming from school attainment and parental education to circumvent reverse causation. Results show a strikingly similar pattern across the diverse set of countries in our sample. In fact, the instrumental-variable estimates are consistently larger than those found in standard least-squares estimations. The same is true in two "natural experiments," one of which exploits variation in skills from changes in compulsory-schooling laws across U.S. states. The other one identifies technologically induced variation in broadband Internet availability that gives rise to variation in ICT skills across German municipalities. Together, the results suggest that least-squares estimates may provide a lower bound of the true returns to skills in the labor market.

In this paper, the authors first discuss the Neumark and Troske piece, and then compare the U.S. context to that in Europe and Korea, as described by the Caspar, Hartwig, and Moench and the Cho and Shin contributions. Although they are in basic agreement with Neumark and Troske on the extent and depth of the current employment situation, they differ to some extent in terms of remedies. While Neumark and Troske argue that the stimulus packages had a very small impact on the economy, the authors feel that this may be too negative an assessment, especially given the larger global financial forces that seem to overwhelm domestic job creation efforts. The European and Korean papers contribute an important comparative perspective on the recession. As Cho and Shin argue, Korea fared very well due to rising demand for domestic consumption and a very small welfare state. However, Korean institutions are hard to convert or directly compare to those in the United States. It is hard to tell a "European story" because of the large difference in institutions and the differing impacts of the recession. Germany and Scandinavia have clearly done much better than Spain, Greece, or Ireland. Caspar, Hartwig, and Moench emphasize that if the gains are to be longer term, there needs to be "structural reform" of the labor market--to "strengthen labor market policies that reduce structural unemployment rates, increase labor market participation, strengthen the reallocation of labor toward a smart, sustainable, and inclusive economy, and promote social cohesion by targeting specific groups of workers." All of this sounds great, but how does the United States move toward these goals? It is harder than one might expect to extract some clear lessons about how deeper economic pain could have been avoided or how one might be able to make more significant or rapid progress in pulling the U.S. labor market out of its malaise. If anything, the authors find that, of the nations examined in this set of articles, each has a different story to tell about the great recession, and the reality is that in every case, the stories are not yet fully told. (Contains 1 table.)

The aim of this paper is to provide a comparative analysis of higher education and the graduate labour markets in selected European countries (France, Germany, Spain and United Kingdom) in the context of the expectations of graduates and prospective employers, and respective recruitment and selection practices. Expectations of graduating students from a number of European collaborating universities are sought and analysed in order to find out about a match between the knowledge and skills of graduates and the needs of European employers. The study examines the process of graduate recruitment, employee and employer expectations, and the role of higher education institutions in meeting such expectations. Primary data was gathered from 252 employers and 485 final year (graduating) students through the use of questionnaires. The analysis of the data collected has revealed different approaches to but similar methods of graduate recruitment between the four countries. Despite the current differences in higher education systems and labour market trends, the expectations of employers and graduating students are more similar than different. It is concluded that EU graduates will have good employment prospects in an integrated labour market.

This paper analyzes the effects of German labor market reforms on the competitiveness and performance of the German economy. The contribution starts with giving some background information on the rationale behind the reforms and stresses the specific structure of the German economy. We then describe the salient effects of the reforms for employment and labor market integration. Finally, the dark side of the reforms, i.e., labor market segmentation and wage inequality, are addressed, which leads to the general question of how the reforms can be reconciled with the notion of social justice.

Using data on German university graduates, this paper analyzes wage differentials by field of study at labor market entry and five to six years later. At both points of time, graduates from arts/humanities have lower average monthly wages compared to other fields. Blinder-Oaxaca decompositions show that these wage differentials can be explained largely by different job and firm characteristics rather than by individual or study-related characteristics. We also find evidence that the less favorable job and firm characteristics of arts/humanities graduates at labor market entry will persist for (at least) the next five to six years. (Contains 7 tables and 11 notes.)

By analysing the childcaring experiences of female skilled workers from South Korea (hereafter, Korea) in Germany, this paper maintains that the challenges in labour market participation for highly skilled women, and especially those with children, should be understood in the context of their encounters with similar and different care and employment regimes between their home and host countries. On the theoretical level, this research confirms the argument that the migration of highly skilled workers should be contextualized not from a neoclassical perspective in which the maximization of economic profits takes priority, but from an institutional point of view in which social and cultural norms, practices, and policies in both the home and host societies are taken into consideration. Specifically, through a series of in-depth interviews conducted with skilled female migrants from Korea, this paper highlights the significance of taking the function of similar and different caring and employment regimes into account in explaining the challenges faced by highly skilled migrant women in labour market participation. On the empirical level, this paper sheds light on the migration experiences of skilled women from Asia as well as the (dis)integration processes of newcomers from third-national countries in Germany, with a focus on female migrants from Korea. [ABSTRACT FROM AUTHOR]

From the early 1990s until 2005 the unemployment rate rose in Germany from 7.3 to 11.7%. While the unemployment rate reached its peak in 2005, it decreased steadily in the following years. The fourth stage of the German labor market reform (Hartz IV) was implemented in 2005 with the intent to cut the unemployment rate. This paper investigates the employment and welfare effects of the Hartz IV reform. Moreover, I am interested in the employment impact of German labor market reform due the rise of the East, which is the productivity increase in Germany and Eastern Europe that has fostered joint fast-growing trade. The focus lies on the national and county level (including 402 counties). As the effects on regional labor markets differ and take time, the paper builds on the dynamic and spatial trade model of Caliendo et al. (2019). I find that the Hartz IV reform is responsible for a 25% drop in unemployment, with a particular impact on eastern German counties. The rise of the East leads to an additional positive contribution to the labor market. [ABSTRACT FROM AUTHOR]

In recent years, the transition from higher education to work in comparative perspective has attracted increasing attention from scholars and practitioners alike. Previous studies reveal similarities and differences in labour market outcomes across countries, but explanatory frameworks mainly refer to fields of study, whereas differences by types of institutions and types of degrees remain largely descriptive. Therefore, this paper specifically focuses on these institutional structures by arguing that the institutional stratification of higher education systems is crucial for shaping graduate employment prospects. More specifically, it is assumed that the higher the vertical differentiation of types of institutions or types of degrees, the stronger the differences of employment outcomes. This assumption is tested empirically by analysing two country cases most different in the institutional set-up of their higher education systems: Germany and Britain. By applying hazard models to the German Socio-Economic Panel and two British cohort studies (NCDS and BCS70), the paper shows that the vertical differentiation of British higher education institutions and degrees differentiates the transitions to the service class more strongly than in Germany. Thus, for understanding transition patterns from higher education to work in comparative perspective, it is necessary to take into account the institutional structure of higher education systems. [ABSTRACT FROM PUBLISHER]

On the basis of inter-cohort comparisons, this paper describes patterns of intra-generational occupational mobility in Germany and their long-term trends since World War II. It also presents conceptual links between individual mobility and developments of inequality along the life course, with a special focus on the question of the extent to which employment careers are characterised by specific forms of cumulative advantage and disadvantage. Finally, it is asked how intra-generational developments are related to inter-generational social mobility. The paper also discusses how mobility patterns can be linked to specific institutions which - together with labour market conditions - are crucial determinants of the development of inequality within a cohort. In its empirical part, the paper presents evidence from cohort-specific analyses based on life-course data from a broad range of West German birth cohorts. [ABSTRACT FROM AUTHOR]

This paper seeks to reveal whether fixed-term contracts are the new European inequality and does so in a comparative analysis of two countries typically regarded as eurosclerotic: West Germany and France. We compare the wages, wage growth and labour market outcomes of fixed-term contract workers relative to a matched sample of permanent workers with similar characteristics. Using seven waves of the European Community Household Panel (ECHP) we find evidence of wage penalties, increased exposure to unemployment and repeat spells of fixed-term employment. However, these tendencies vary significantly by country and by gender. The main finding of this paper is the extent to which fixed-term contract employment is of considerable disadvantage for French women. This is important, as previous research on female employment in the UK and in West Germany (Booth et al., 2002; Giesecke and Gross, 2003), two countries with intermittent female employment, did not find evidence of fixed-term worker disadvantage. Our findings, however, suggest that in countries where female employment tends to be full-time and continuous, the introduction of fixed-term contracts challenges the existing gender contract. [ABSTRACT FROM AUTHOR]

Purpose -- The paper aims to present an analysis of the indirect and direct effects of active labour market policy measures at the regional level for Western Germany. Design/methodology/approach -- Most evaluation studies of active labour market policy focus on the microeconometric treatment effect using individual data and do not account for possible indirect effects like deadweight and substitution effects. The present study uses a dynamic specification of the augmented matching function at the regional level. A dynamic panel data model is estimated using monthly and regional variation of different labour market programmes as explanatory variables. Furthermore, spatial interactions are taken into account by adding a spatially correlated error term. Findings -- Almost no significant negative effects are found of the stock of participants in programmes of labour market policy on the number of outflows from unemployment into regular jobs. Thus, contrary to findings at the individual level, no lock-in effect is found. The number of programme participants does not reduce the number of outflows from unemployment. On the other hand when looking not at the stocks but on the outflows from programmes, no positive effects on outflows from unemployment at the regional level are found. Research limitations/implications -- Because of data limitations only a period up to six months after completing a programme is used. Originality/value -- The authors distinguish between the effects of the stock of programme participants and of the outflows from programmes. Furthermore, the authors account for spatially correlated error terms by using a GM estimator proposed by Muff in 2006. [ABSTRACT FROM AUTHOR]

The paper analyses the change of job stability and its determinants in the course of time by presenting some empirical evidence from Germany. Drawing upon event history data from the German Federal Labour Office insurance accounts and employing Cox Proportional Hazard Rate Models, we test six core hypotheses on labour market restructuring and its impacts on job stability. Our analysis suggests that during the transition to service society between the 1980s and the 1990s some kind of ‘restructuring’ of the German labour market has taken place that has simultaneously led to an increasing polarisation and to an increasing levelling out of individual employment chances and risks. [ABSTRACT FROM AUTHOR]

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Dualization is a recurrent concept in analysing the political economy of labour market reforms in European countries. While it helps to make sense of changes at the margin of labour markets, so far, it remains unclear whether there are repercussions for standard employees. The paper examines this question by assessing changes in the German labour market. We argue that the growing availability of non-standard work increases pressure on core workers to accept more flexibility. The study yields two results. First, labour market reforms were, indeed, targeted at outsiders and continued in small and sometimes contradictory steps. The direction of change was determined by the socio-economic problem pressure of the respective period, but independent of government composition. Second, while insiders objected to such marginal flexibilization in principle — once the reforms were in place — they reacted with wage moderation and other instruments, thus strengthening their competitiveness relative to flexible workers. [ABSTRACT FROM PUBLISHER]

This article compares how the United States and Germany deregulated labor markets between the 1980s and 2010s in response to the rise of neoliberalism. Building on literature with a focus on ideas and national knowledge regimes, the authors argue that the trajectories of labor market deregulation across the two countries are explained by the distinct social organization of ideas. The latter refers to the actors and institutions involved in the production and dissemination of ideas (including think tanks and public research institutes), their access and ways of communicating to political elites and electorates, levels of shared academic standards across the political divide, and related degrees of competition or cooperation in the production of new knowledge and policy ideas. Moving beyond previous employment relations literature with a focus on institutions and power, the article breaks new theoretical ground by demonstrating how the social organization of ideas is a key intermediary in explaining employment relations change and continuity. [ABSTRACT FROM AUTHOR]

We analyse insecurity-based dividing lines and their social configurations in the German, Belgian and Italian labour markets in 2015, using latent class analysis applied to EU Labour Force Survey data. In contrast to the dual vision of 'insider-outsider' approaches, our findings illustrate the existence of five distinctive labour market groups or segments across countries with similar social configurations. We explain this through the social embeddedness of national regulatory systems which generate different degrees of inclusiveness for different groups of workers. This adds to ongoing debates on connecting micro- and macro-levels of analysis, as labour market segmentation as a macro-phenomenon is studied based on its micro-foundations (terms and conditions of employment relationships). We use the interlinkages between national regulatory systems and social categories to explain the findings. [ABSTRACT FROM AUTHOR]

Given an ageing population and increased participation by women in the labour force, the relationship between unpaid care and the availability of women to the labour force is gaining in importance as an issue. This article assesses the impact of unpaid care on transitions into employment by women aged between 45 and 59 years. It uses the German Socio-Economic Panel (SOEP) from the years 2001–2014 to estimate Cox regression models for 6,201 employed women. The results indicate that women with higher caring responsibilities and women with lower caring responsibilities are heterogeneous in terms of the socio-economic characteristics that they exhibit: higher-intensity care providers tend to have a lower level of educational attainment and a weaker attachment to the labour force than women with less-intensive caring responsibilities. Furthermore, while women with more-intensive caring roles are highly likely to exit the labour market altogether, female carers with less-intensive roles seem to be able to combine work and care better. These results highlight the importance of providing more affordable institutional and professional care services, especially for low- and medium-income families. [ABSTRACT FROM AUTHOR]

Although the low-wage employment sector has enlarged over the past 20 years in the context of pronounced flexibility in restructured labor markets, gender differences in low-wage employment have declined in Germany, Austria and Switzerland. In this article, the authors examine reasons for declining gender inequalities, and most notably concentrate on explanations for the closing gender gap in low-wage employment risks. In addition, they identify differences and similarities among the German-speaking countries. Based on regression techniques and decomposition analyses (1996-2016), the authors find significantly decreasing labor market risks for the female workforce. Detailed analysis reveals that (1) the concrete positioning in the labor market shows greater importance in explaining declining gender differences compared to personal characteristics. (2) The changed composition of the labor markets has prevented the low-wage sector from increasing even more in general and works in favor of the female workforce and their low-wage employment risks in particular. [ABSTRACT FROM AUTHOR]

This article investigates the degree of monopsony power of employers in different industries against the background of a statutory minimum wage introduction in Germany in January 2015. A semi-structural estimation approach is employed based on a dynamic model of monopsonistic competition. The empirical analysis relies on a linked employer–employee data set which allows to control for observed heterogeneity both on the worker and on the firm side. The results show important differences in monopsonistic competition among low-wage industries: While retailing, the hotel and restaurant industry as well as agriculture can be described as monopsonistic labour markets, this is not true for other services and manufacturing of food products. From a policy point of view, the introduction of a uniform minimum wage may therefore lead to different employment reactions in industries with a similar minimum wage bite. [ABSTRACT FROM AUTHOR]

Aim: The scientific objective of this study is an attempt to clarify the institutional aspects of the functioning of the labour market in Germany that are relevant to the response to the global economic crisis of 2008-2009. Motivation: The reaction of German labour market was totally different than during previous recessions and the explanation of the sources of this response constitutes the main motivation to undertake this study. The considerations rely on the thesis that it could be attributed to the institutional infrastructure combined with clever economic policy of the state and responsible behaviour of social partners. The economic theory suggests how an isolated institution functions, but in the real world they works in the whole institutional network. Therefore the broader context and some linkages are mentioned. Results: After a brief review of the main macroeconomic indicators and selected labour market institutions in Germany in comparison to the OECD countries, the labour market reforms undertaken in the period between 2002 and 2007 will be discussed. Then, selected on the basis of literature studies, institutional buffers of the labour market mitigating shocks are examined with particular emphasis on the instruments of internal flexibility, social partners' behaviour and institutional connections of labour markets with other domains of economic order. The elements of institutional framework are subject to qualitative analysis backed up by available official statistical data. [ABSTRACT FROM AUTHOR]

This article explores how institutional differences matter to the quality of a nation’s jobs; job quality is conceived as a dimension of a national economy’s social performance and thus defined in accordance with civic principles. Focus is on the two archetypical varieties of capitalism, the United States and Germany. Using data from a 2009 telephone survey of U.S. and German workers, we find that the overall attainment of civic principles, as perceived by workers, is no different in Germany than in the United States, even though the German institutional environment should be more conducive to them. This is due to higher worker expectations in Germany and a tendency for employer practices to compensate for the weaker (liberal) institutional environment in the United States. Once these are controlled, German workers report substantially more positive outcomes. We find that institutional differences also matter in how various employer practices are adopted and hence have indirect as well as direct implications. [ABSTRACT FROM PUBLISHER]

Are party preferences of atypical workers distinct from those in stable employment? The welfare state literature debates this question, but very few empirical studies have been conducted. We examine the German case, being an example of a welfare state with strong social insurance traditions where the rise of atypical employment has been conspicuous. In particular, we test the argument that preferences of labour market outsiders may not differ because outsiders share households with insiders. We find that labour market status significantly affects party preferences. Compared with standard employees, atypical workers have stronger preferences for small left-wing parties. Living together with a labour market insider neutralizes these party preferences, but this type of household is not very common. Moreover, atypical workers differ from the unemployed by not participating less in elections than insiders. Therefore, it is expedient to distinguish between different types of labour market outsiders. [ABSTRACT FROM AUTHOR]

Purpose – In recent years, the number of freelancers has increased considerably, especially in the IT and the media sectors. Additionally, the discussion around employability has intensified because of its relevance for employees in meeting labour market demands. Employability is especially important for freelancers as it has a key influence on their financial success. However, there is a lack of empirical research on the employability of freelancers and the competences associated with it. This article aims to reduce this research gap by presenting findings of an explanatory study on freelancer employability. Design/methodology/approach – The empirical data in this article is based on 23 semi-structured interviews which were conducted with freelancers in the IT and media sectors. Findings – The results reveal that the employability of freelancers is shaped by technical, social and networking competences. Additionally, it is pointed out that the dynamics in the analyzed sectors are distinct and therefore the intensity of competence development and training is varying. Originality/value – The presented study contributes to research on freelancers as it stresses the necessity of employability for success at work. The link between employability and freelancers has not received prior attention in research. [ABSTRACT FROM AUTHOR]

From 2005 to 2011 employment rose and unemployment rates declined considerably in Germany. This favourable development followed the labour market reforms initiated in 2003, and there has been a tendency to attribute the improved labour market performance to those reforms. Causal micro-evaluations of the various measures, however, show hardly any effects on variables that can be related to employment. Rather, it seems that employment increased in response to a process of wage moderation that had already begun in the 1990s. It is possible that this moderation was itself partially a product of the reforms, but this needs further investigation. [ABSTRACT FROM AUTHOR]

The European Employment Strategy (EES) has opened up new dynamics of Europeanization in the area of social policy. This article proposes to pay more attention to national core executives and their strategic use of the EES when considering its impact. Through core executives, the EES may not only affect domestic policy agendas, but also decision-making on reform. A comparative case study of activating employment policy reforms in the Netherlands and Germany evaluates expectations about how these agents upload and download ideas to and from the EU level. The findings indicate that uploading is facilitated by holding the EU presidency and a good fit with EES prescriptions, while downloading does not seem to depend on prior uploading and degree of fit but on other domestic factors. True strategic use of the EES by core executives following a sequence of uploading and downloading appears to be contingent on several contextual factors. [ABSTRACT FROM PUBLISHER]

This article attempts to answer the question to what extent recent reforms aimed at flexibilizing the German labour market affected immigrants and how this explains the (in)stability of their employment paths. Based on the 1996–1999 and 2001–2004 German micro-census panels, we focus not only on transitions from employment to unemployment and vice versa, but also on the type of employment, either open-ended or fixed-term. Dynamic random effects models explore the effects of the employment status in the preceding year on the employment status in the subsequent one for various groups of immigrants. Results confirm the more precarious nature of immigrant employment with a more frequent mobility in and out of unemployment, a more pronounced incidence of fixed-term employment and a higher instability of open-ended jobs. [ABSTRACT FROM PUBLISHER]

Family policies have been expanded in many OECD countries, whilst developments along other welfare state dimensions have been characterized by retrenchment. Although the contribution of gender analyses of the welfare state to a better understanding of family policies is widely acknowledged, the literature so far has largely failed to provide a comparative account explaining the recent expansions of employment-oriented family policies in countries that were previously categorized as pursuing policies in accordance with the strong male breadwinner model. This article aims to make a contribution to the comparative literature by investigating the socioeconomic conditions and politics of employment-oriented family policy expansions in Britain and Germany since the 1990s. We pay special attention to processes of post-industrialisation and especially changed skill compositions as well as the role of key policy actors, with a special focus on organized business. [ABSTRACT FROM PUBLISHER]

Since unification, the debate about Germany's poor economic performance has focused on supply-side weaknesses, and the associated reform agenda sought to make low-skill labour markets more flexible. We question this diagnosis using three lines of argument. First, effective restnicturing of the supply side in the core advanced industries was carried out by tie private sector using institutions of the coordinated economy, including unions, works councils and block-holder owners. Second, the implementation of orthodox labour market and welfare state reforms created a flexible labour market at the lower end. Third, low growth and high unemployment are largely accounted for by the persistent weakness of domestic aggregate demand, rather than by the failure to reform the supply side. Strong growth in recent years reflects the successful restructuring of the core economy. To explain these developments, we identify the external pressures on companies in the context of increased global competition, the continuing value of the institutions of the coordinated market economy to the private sector and the constraints imposed on the use of stabilizing macroeconomic policy by these institutions. We also suggest how changes in political coalitions allowed orthodox labour market reforms to be implemented in a consensus political system. [ABSTRACT FROM AUTHOR]