Blau and Kahn (both professors of labor economics at Cornell U.) compare the labor market performance between the United States and other Western industrialized nations. Focusing primarily on the effect of direct attempts to change market outcomes with respect to pay setting and firms' utilization of labor, they look at collective bargaining agreements and regulations of wage determination, as well as other less direct mechanisms. Economic performance of the OECD countries from the 1970s to the 1990s is related to international differences in institutions. The reasons for wage inequality in the United States are related to a lack of collective bargaining agreements, but Europe's relative lack of inequality is blamed for higher rates of aggregate unemployment. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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FRANCINE D. BLAU is Frances Perkins Professor of Industrial and Labor Relations, and LAWRENCE M. KAHN is Professor of Labor Economics and Collective Bargaining, School of Industrial and Labor Relations, Cornell University.
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