The State and the Labor Market

In the two decades before the mid-1970s, macroeconomic policies in Western Europe were frequently accompanied by policies of direct wage restraint in the pursuit of acceptable levels of employment, inflation, and international competitiveness. The same period witnessed a proliferation of social welfare programs, elements of which were sometimes commingled with demand management and pay policies in trilateral bargaining processes involving gov­ ernments, unions, and employers. In the wake of...