Heinz Capitalism: How Many Varieties Are There? An Empirical Reexamination of Coordination Mechanisms in Advanced Market Economies
47 Pages Posted: 8 Jun 2006
Date Written: May 2006
This paper assesses the empirical foundations of the Varieties of Capitalism (VOC) literature. Using data for 18 OECD countries from 1975-2000, it tests a set of hypotheses concerning the relationship among labor, product and capital market institutions. We present two main findings. First, the typology of institutional combinations identified by VOC has limited empirical validity. While we do find a stable core of countries that approximates the set of liberal market economies described by Hall and Soskice, we find no consistent distinction between coordinated and Mediterranean market economies. Second, individual institutions have moved in different directions over time, some towards market and others towards non-market coordination. Our findings should caution researchers against adopting the VOC distinction between liberal and coordinated market economies at face value.
Keywords: varieties of capitalism, institutional complementarities, advanced industrial capitalism
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