Conclusion

Abstract

The evidence presented here has shed new light on both the assumptions and the empirical implications of the varieties of capitalism approach. Not only does the basic evidence about the coverage of key labour-market institutions appear to call into question some of the underlying assumptions of the varieties of capitalism approach, but so too does much of the data on comparative advantages as well as that on the effects of works councils and sectoral collective agreements on measures related to personnel issues. Similarly, the evidence on complementarities between institutions — which occupies a prominent position within the varieties of capitalism approach — does not support the contentions within that framework.