Premium Essay

The Flexibility of Labour Markets and the Elite-Orientated Education of Liberal Market Economies in the Uk and the Us Result in Higher Degrees of Inequality Compared to Coordinated Market Economies. Discuss.

In: Business and Management

Submitted By mam09dm1
Words 3049
Pages 13
The flexibility of labour markets and the elite-orientated education of liberal market economies in the UK and the US result in higher degrees of inequality compared to coordinated market economies. Discuss.

Student ID: 0956592

Word count (excluding references): 2492

This paper will discuss and analyze whether the flexibility of labour markets and the elite orientated education in liberal market economies, found in the UK and the US are the only reasons for higher degrees of inequality, compared to coordinated market economies. In order to understand the labour markets of liberal market economies and coordinated market economies, they must be defined in terms of their differences, which can affect the flexibility of their labour markets. Furthermore, it is important to note that there are numerous inequalities which may emerge in this analysis. Namely, gender inequality, class inequality, and wage inequality as well as some other perspectives will be examined. The aim of this paper is recognize which inequalities are more prominent in either liberal market economies or coordinated market economies, in relation to the flexibility of relevant labour market. Drawing on the work of Polanyi (1994), Esteves-Abe et al. (2001) suggest that market failures in economies can be avoided depending on the type and the extent of the social protection offered from national institutions. Liberal market economies, such as the US and UK, have an institutional framework which accents “general competences and skills”, deregulated labour markets within which management is largely in control, a short-term profitability corporate governance structure, and a market which is competitive in transfers of technology (Soskice, 2005:171). In contrast, in coordinated market economies, such as Germany and Japan, and other Northern European countries, business is much more coordinated by…...

Similar Documents

Premium Essay

Social Market Economy

...Proceedings No. 21 Of the Agricultural Policy Forum on Social Market Economy In the Context of National & International Challenges Prepared by Mrs. Nawal Nehme Info-Com Division Held in Damascus on 13 April 2006 With the support of Table of Contents Introduction ...................................................................................................................................... 3 Synthesis of The Presentation .......................................................................................................... 3 Summary of Discussion ...................................................................................................................12 Annex (1) List of Participants .......................................................................................................... 15 Annex (2) Slides of The Presentation ..............................................................................................18 Proceedings No. 21– Social Economy Market 1 2 Proceedings No. 21 – Social Economy Market Introduction The workshop “the Social Market Economy in the Context of National & International Challenges” was the first activity of the 2006 Agricultural Policy Forum series organized by the National Agricultural Policy Center (NAPC) with the support of the FAO Project GCP/SYR/006/ITA. Dr Isam El-Zaim, Director General of The Arab Center for Strategic Studies and Head of the Syrian Economic Scientific Association,......

Words: 7769 - Pages: 32

Premium Essay

Markets & the Economy

...Markets and the Economy The economy is determined by the dynamics of the labor market. Since economics is the study of choices, macroeconomics is the study of the overall economic environment. Through understanding how the market affects the economy, this paper will research: how an increased federal budget deficit can stabilize an economy; how adjustments in wages and prices move the economy from short to long-run equilibrium; how marketable pollution permits lead to less costly abatement; and, how the GDP should include additional factors to achieve a better measurement for well-being. When the federal government spends more than it receives, a budget deficit occurs. On the contrary, a surplus will occur when income surpasses spending. Both deficit and surpluses can help to stabilize an economy. An increased federal budget deficit resulting from a recession can actually help stabilize an economy. This can be done through increased unemployment payments, decreased unemployment taxes, corporate taxes and personal income taxes. Each of these channels provides countercyclical policy automatic stabilizers. They promote a budget deficit during recession. People are laid off during a recession causing the unemployment payments to increase. Since people are not working, business unemployment compensation taxes are decreased. The result is higher governmental spending and lower tax receipts. On the same token, the corporate tax receipts on profits are cyclical to the...

Words: 1219 - Pages: 5

Premium Essay

Markets and the Economy

...Markets and the Economy Kizzy Teasley Principles of Economics Dr. Onipede According to Arthur O’Sullivan, Steven Shefferin, and Stephen Perez in their text Survey of Economics: Principles, Applications, and tools; economics provides a framework to diagnose all sorts of problems faced by society and studies the choices we make when there is scarcity. (2011) Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. Periods of high economic unrest, such as a recession are marked by micro and macroeconomic turmoil. Increased Federal budget deficits are synonymous with economic recession. When the terms budget and deficit are used together one usually only thinks of the negative contributors to the budget deficit. However, an increased federal budget deficit resulting from a recession can actually help stabilize an economy. During periods of recession we see high unemployment rates and decreased per capita income. In order to pump life into a stagnant economy the government puts money into government programs such as unemployment insurance. Also during a recession tax revenues are decreased due to decreased per capita income. (http://www.nd.edu/~cwilber/econ504/504book/prob14.html) Decreased tax revenues and increased expenditures equates to an increased budget deficit. Yet, the actions of the government actually work......

Words: 988 - Pages: 4

Premium Essay

Markets and the Economy

...Markets and the Economy 1. Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. 2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium. 3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system. 4. Although GDP per capita is the most commonly used measure of a country’s success, many economists believes it does not give an accurate measure of a nation’s economic well-being. Some studies have concluded that that GDP is not the best measure of well-being, and although it may be the best available on a timely basis, other factors need to be considered in addition to GDP to give a more accurate picture of economic well-being and the disparity of well-being between nations. Clearly identify at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation. Describe the impact of public goods and externalities on the functioning of an economy. • Use the dynamics of the labor market to anticipate wage rate and labor supply changes. • Analysis of the key macroeconomic phenomena: GDP, unemployment, inflation. • Use technology and information resources to research issues in economics Solution: 1)......

Words: 1054 - Pages: 5

Premium Essay

Uk Economy Trend and Retail Market Situation

...UK economy trend and retail market situation Distinctive feature of economic life in the UK at present time is a financial and economic crisis and its consequences, which took a severe stroke to banking system. Problems in the financial sector were followed by difficulties in other sectors of the economy, and as a result, production was reduced, unemployment was increased, consumer demand sharply was reduced, the real estate market was deteriorated, the British currency felt to its lowest level in 25 years.  In the second half of 2008 UK economy entered a recession, and in the first half of 2009 UK GDP declined by 4.4% compared to the same period in 2008. However after the very strong downturn, UK's economy began to show signs of recovery since the second half of 2009.  Macroeconomic statistics for 4th quarter of 2009 gave cause for optimism: the first time since the beginning of crisis weak growth of 0,3% had been recorded (Table 1.) Table 1. GPD Growth (www.statistics.gov.uk) |[pic] | Household Consumption first time after the crisis has become positive in Q3 of 2009 growing by 0.1% (Table 2.) Table 2. GDP by spending (Economic & Labor Market Review, Jan’10) [pic] The rate of inflation in UK has been slowed down in 2009 due to the decrease of demand caused by economic weakness. However there was sharp increase......

Words: 581 - Pages: 3

Premium Essay

The Market Economy

...“The Market Economy” by Marge Piercy the author offers us a very bleak outlook on the overt commercialism of our modern society and of the toxic damage caused by modern manufacturing. In each small example the author provides we are at first sold, or offered something by an unseen, unnamed “peddler”. (1) Then we are shown the consequence of accepting the peddler’s wares, both to ourselves and to the natural world around us. The author is showing us the cost of all of our modern goods, and while the TV set might not reach out and grab your baby’s spine and twist it all up, the toxins created during its manufacture certainly will.(1-4) Just as the manufacturing of polyvinyl cups and polyester suits(5-8) emits dangerous toxins such as vinyl chloride, chlorinated di-benzo dioxins and hydrogen chloride.(EPA) All of which will cost you a lung and might also create cancer in humans. Even the nice new suburban house comes with a cost, you must work at a dangerous factory in order to pay for it, but then you “die at fifty-one when your kidneys turn off.” (19-20) the point the author is trying to make is that we are ultimately paying for all these new items with our lives. They are new, shiny and great, but they leave a wake of environmental devastation behind them. A wake that we all live in and are affected by whether or not we take part in the commerce that created it. The last verse it the authors attempt at telling us that the world is closing in around us. She asks us......

Words: 716 - Pages: 3

Premium Essay

Market Economy

...involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals of market economy after......

Words: 1842 - Pages: 8

Premium Essay

The Market Economy

...“The market economy” by Marge Piercy, is a free verse with no rhyme or rhythm, and has very few poetic technics. Piercy was born in 1936, and grew up during the rise of capitalism in the United States. This suggest to me that her intended speaker is a mother in search of work during this time. The speaker could also be Piercy herself. The tone of the poem is consistent throughout. Piercy’s subject matter along with her choice of blatant words create a gloomy, depressing, and disheartening tone. I feel that this tone reflects the attitude American society had just after the Great Depression: “You’ve been out of work for a year and they’re hiring at the plastic factory” (26-27). Even though the tone is consistent throughout, there is a contradiction from the first stanza to the second stanza. Piercy uses mostly denotative words in “The market economy”, which she intends to be used by the dictionary definition. The only connotative expression in the poem is “Smog City” (23), referencing negatively to a capitalist nation full of factories that produce harmful, hazardous waste. The short poem is broken up into two stanzas. The first stanza states the harsh truth about the various health affects the capitalist economy can have on society. She argues that capitalism is harmful by giving examples in a hypothetical manner, but in reality, these things she is talking about really do happen. The contradiction of the first stanza comes in the second stanza when she...

Words: 342 - Pages: 2

Premium Essay

Market Economies

...scarce resources. Explain how resources are allocated in a free market economy? Scarcity is the availability of resources in limited amounts relative to unlimited nature of human wants that the resources are meant to satisfy. According to Richard G Lipsey It is the basic economic problem that is arises because people have unlimited wants and limited resources. Because of scarcity the economic decision must be made to allocate resources efficiently. When we talk of scarcity within an economic contest, it refers to limited of resources not lack of riches. These resources are the inputs of production land, labour and capital. People must make choices between different items because resources necessary to fulfil their wants are limited. These decisions are given up on want to satisfy another. Market economy enables mutual beneficial between producers and consumers and relies on markets to solve the economic problem, is called market economies. In a free market economy, resources are allocated through the market of free and directed forces of markets. This means that what to produce is determined by the consumers, how to produce is determined by producers and who gets the product is determined by the purchasing power. Markets economies work by allowing the direct interaction of consumers and producers who are pursuing their own interest. The pursuit of self interest is at the hand of free market economy In a free market economy resource allocation is determined by the price......

Words: 1122 - Pages: 5

Premium Essay

Is the Reliance on the Financial Sector an Inherent Weakness of the Uk’s Liberal Market Economy?

...the UK’s liberal market economy? The United Kingdom’s City is an internationally recognised financial centre. Given the predominance of the City, the UK’s economy finds itself accommodating to this active and volatile industry. Before discussing whether or not this reliance on the financial sector is an inherent weakness of the UK’s liberal market economy, two questions need to be explored: firstly, how liberal is the UK’s liberal market and; secondly, how reliant is it on its financial sector? This will be the focus of the first part of this essay and it concludes that with increasingly liberal policies becoming conventional wisdom in British politics, the continuing expansion of the financial sector is inevitable. The second part will analyse the consequences of the Financial Crisis and how the UK’s dependence on the financial sector is, within this context, a momentous drawback. However, the third part of this essay will explore the idea that although better regulation and governance is necessary, the UK should maintain its dominance in the financial sector as it has become inherent to British economic culture and offers comparative advantage over other economies. ________________ Political ideology and resulting policies are very influential in promoting or reducing the magnitude of certain economic sectors such as manufacturing, agriculture, mining or financial industries. The remarkable expansion of the British financial sector is therefore a direct result of......

Words: 3016 - Pages: 13

Premium Essay

Inequalities for Women in the Labour Market

...that allow women to take on so much are in fact the same factors that hold them back from any advancement within the labour market. According to Krahn, Lowe and Hughes, authors of Work, Industry and Canadian Society (2008), women find themselves seeking refuge in employment facilities with “little economic security and little opportunity for advancement; furthermore the work is often unpleasant, boring and sometimes physically taxing” (p.187). It often forces the female population to strictly seek jobs in the service sector assigned to them based on gender alone. Women have been stereotyped into being domesticated labourers due to the double standard. Women in Canada also face the problem of earning significantly less than their male counterparts. Editors of Dividing the Domestic: men, women, and household work in cross-national perspective, Treas and Drobnic (2010) claim, “despite the increasing number of women in the labor market, women still have fewer managerial positions and earn less income than men” (p.44). Joan Williams author of Beyond The Maternal Wall: Relief For Family Caregivers Who Are Discriminated Against On The Job (2003) refers to this theory as “the glass ceiling”. The male dominancy within the labour market provides major success and higher earnings for men. Women however, are not taken seriously in highly recognized jobs within the labour industry as their main priority is within the domestic dwelling and their child rearing responsibilities......

Words: 1779 - Pages: 8

Premium Essay

Markets and the Economy

...The Principles of Economics – Markets and the Economy * Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy. Before I can explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy, I most first explain what a budget deficit is. Arthur O’Sullivan, Steven M. Sheffrin and Stephen J. Perez (2011), authors of Survey of Economics: Principles, Applications, and Tools explain that the federal government runs into a budget deficit “when it spends more than it receives in tax revenues in a given year.” A government’s deficit can be measured with or without including the interest it pays on its debt. So “the total deficit is spending, plus interest payments on the debt, minus tax revenues” (Wikipedia, 2011, para. 2). To better understand budget deficit, let’s look at an example. If the government puts a budget together wishing to spend $150 billion that year but only receives $140 billion from revenues, they must make up the difference. They make up the difference by selling public government bonds, which is an IOU from the government promising to pay the money back at a later date with interest. Budget deficits can help to stabilize the economy because the government must maintain normal operations even though its income has decreased. Government’s expenses have to increase to cover the increase in welfare and unemployment payments. Such automatic......

Words: 1844 - Pages: 8

Premium Essay

Market Economy

...there is not enough competition. In a mixed market economy, the government helps prevent monopolies and to ensure competition (Economics, pg 39). With the competition, motivation is created to strive to be successful. The goals that a mixed market economy is trying to accomplish are economic freedom, economic efficiency, economic equity and economic security. Theses are all advantages for economic success. (Economics pgs 41-43) The advantages are very numerous. The biggest advantage is the economic freedom the citizens have. Buyers and sellers have the freedom of voluntary exchange. Buyers and sellers freely decide whether to complete transaction of not. Another advantage is the competition from other business. The competition between companies creates a variety of advantages from consumers. The prices get lowered and there is more variety. The competition between businesses creates economic efficiency. Using resources efficiently produces more products and fewer wastes creating a larger profit. Another advantage is economic equity; this prevents discrimination in the work place. Economic security is an advantage as well. This protects people with disabilities or retirees. Also, there is a high degree of costumer satisfaction because of the freedom of the citizens and the people can adapt to changes. (Economics pgs 37-38) The government in a mixed market economy is limited but not as much as that in a market economy. The government covers the......

Words: 977 - Pages: 4

Premium Essay

Economy and the Markets

...increase in federal budget deficit due to recession can stabilize the economy. A deficit means that the government spends more than it receives in tax revenues in a given year (O’Sullivan, Sheffrin, & Perez 2010, p. 374). The total deficit is spending, plus all the interest payments on top of the original debt, minus the total tax revenue (http://www.blurtit.com). There are three factors, known as automatic stabilizers, that affect and stabilize the economy, they are: 1) government purchases of goods and services, such as public safety, government transfer of payments, and unemployment insurance, 2) Medicaid or Medicare etc.,and 3) the collection of taxes. If the government cut taxes or increases transfer payments such as unemployment insurance and food stamps this helps to offset the decrease in household income. Additionally, when government cuts corporate taxes, it helps prevent businesses from cutting expenses as much as they would during a recession. Therefore, an increased federal budget deficit can help stabilize an economy for as households’ disposable income rises they will spend more. Fortunately, mechanisms such as automatic stabilizers are in place to neutralize the ups and downs of the economy without having to change laws (O’Sullivan, Sheffrin & Perez 2010, p. 375). How do adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium? ......

Words: 1054 - Pages: 5

Premium Essay

Markets and the Economy

...Markets and Economy rinciples of Economics – ECO100 March 6, 2011 Markets and the Economy Budget Deficits Each problem should have four clearly defined sections. The first section should contain essentially a statement of the problem. For example, “The economic way of thinking can shed some light on possible solutions to alcohol abuse. This paper will propose two policy options designed to reduce abuse.” Repeating and summarizing the question helps one keep in mind the problem to be solved and the exact tasks, propose two solutions. The second section should be an elaboration of the problem using economic thinking. For example, in the case of alcohol abuse, we might begin with “for the purposes of this paper the definition of alcohol abuse will be limited to the cases of excessive consumption of alcohol as a single event. In other words the discussion will not consider alcohol addictions, but only excessive consumption by the casual or social drinker. Additionally, for the purpose of the discussion it will be assumed that the abuse takes place in a setting in which there is potential for the behavior to have negative impacts on neighbors and the community. In other words there is a potential that private behavior by one person of group with have an adverse impact on others.” Once one has defined what one is going to be include in the behavior studied, then one can begin to define possible variables that may cause excess......

Words: 1576 - Pages: 7