Social Pacts, Employment and Growth: A Reappraisal of Ezio Tarantelli's Thought (AIEL Series in Labour Economics)

Social pacts have long been a centerpiece of European politics. They are characterized by negotiations among government, employers, workers, and other interest groups over wages and other economic issues. With the growth of globalization and pervasiveness of knowledge, some economists have called for a reduced role of social pacts and centralized wage bargaining, to be replaced by increased flexibility in labor agreements; others argue in favor of social pacts with contents and orientation different from those that have characterized the last three decades. In this book leading European economists examine the current status of social pacts and their future. Particular focus is placed on the ideas of Ezio Tarantelli, a young Italian economist killed by Red Brigades in 1985. He thought that trade unions could play a positive role by agreeing to set wages on the basis of a target rate of inflation. Therefore, they would contribute to economic and social stability through influencing future price expectations, protecting real wages. But, if inflation did erode real wages, the government could compensate the union(s) through increased social expenditure. As the European Union expands and social change accelerates, this insightful book will be of interest to all concerned with social and economic developments across Europe. Front Matter....Pages i-xi Introduction....Pages 1-11 Front Matter....Pages 13-13 ‘Doing good’. Ezio Tarantelli’s Approach to Political Economy....Pages 15-22 The 1960s and Ezio’s Awakening to the Social Problems of Italy....Pages 23-28 Front Matter....Pages 29-29 Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces....Pages 31-68 The July Protocol and Economic Growth: The Chance Missed....Pages 69-95 The’ 93 July Agreement in Italy: Bargaining Power, Efficiency Wages or Both?....Pages 97-119 Front Matter....Pages 121-121 Wage Bargaining Institutions in Europe. A Happy Marriage or Preparing for Divorce?....Pages 123-156 Front Matter....Pages 157-157 Wage Setting Institutions and Economic Performance....Pages 159-174 Loops Learning and the Phillips Curve....Pages 175-194 Wage Inequality in Europe: the Role of Labour Market and Redistributive Institutions....Pages 195-217 Front Matter....Pages 219-219 Searching for the EU Social Dialogue Model....Pages 221-238 From First- to Second-Generation Social Pacts....Pages 239-251 Front Matter....Pages 253-253 Inflation Inertia, Monetary Policy and Market Competition: Tarantelli Revisited....Pages 255-272 Creating the ‘Neo-Lisbon’ Economy....Pages 273-288 Back Matter....Pages 289-291 Social pacts have long been a centerpiece of European politics. They are characterized by negotiations among government, employers, workers, and other interest groups over wages and other economic issues. With the growth of globalization, some economists have called for a reduced role of social pacts and centralized wage bargaining, to be replaced by increased flexibility in labor agreements; others argue in favor of social pacts. In this book leading European economists examine the current status of social pacts and their future. Particular focus is placed on the role of trade unions, and the positive role they can play for economic and social stability by agreeing to set wages on the basis of a target rate of inflation. This was the argument of Ezio Tarantelli, a young Italian economist killed by Red Brigades in 1985. As the European Union expands and social change accelerates, this insightful book will be of interest to all concerned with social and economic developments across Europe. Social pacts have long been a centerpiece of European politics. They are characterized by negotiations among government, employers, workers, and other interest groups over wages and other economic issues. This book examines the status of social pacts and their future. It focusses on the role of trade unions, and the positive role they can play