Varieties of Capitalism and Job Quality

Abstract

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.

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