IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-31605-0_7.html
   My bibliography  Save this book chapter

Labour Rights, Full Employment, Mental Model Choice and a Dynamic Market Economy

In: Post-Crash Economics and the Covid Emergency in the Global Economy

Author

Listed:
  • Morris Altman

    (University of Dundee)

Abstract

I model how labour rights, providing workers and management with effective voice, combined with full employment contributes to a dynamic, more productive and efficient market economy. Contrary to the ‘mainstream’ view adhered to by both conventional and many ‘heterodox’ economists, that an empowered labour force negatively impacts the economy, I argue that this can have the opposite effect. I model a reasonable scenario whereby higher wages incentivizes firm members to work more efficiently and to engage in higher levels of technological change. This modelling suggests, consistent with Adam Smith’s insights, that tight labour markets are vital to a dynamic capitalism. It is also consistent with a market economy that is fairer and more equitable. Even so, this need not affect policy change if decision-makers believe (based on false mental models) that higher wages and fairness will result in economic collapse. Therefore, changing mental models is critically important to developing a fairer and more vibrant market economy.

Suggested Citation

  • Morris Altman, 2023. "Labour Rights, Full Employment, Mental Model Choice and a Dynamic Market Economy," Springer Books, in: Abdullah Yusuf & Carlo J. Morelli & Omar Feraboli (ed.), Post-Crash Economics and the Covid Emergency in the Global Economy, chapter 0, pages 103-122, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-31605-0_7
    DOI: 10.1007/978-3-031-31605-0_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-31605-0_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.