Varieties of Capitalism and Diversity in Labour Standards Regulation: The Case of Italy

Many scholars and policy-makers argue that advanced market economies are converging towards a neoliberal labour market model with diluted labour standards. However, others insist that `capitalism allows variety'. The primary purpose of this article is to provide empirical evidence that supports the latter position, by comparing legally mandated labour standards in Italy through 1979—2003 and by juxtaposing the results against OECD panel data which allegedly show a decline in labour standards. This comparison suggests that a more complex regulatory transformation occurred than is allowed for by the OECD: indeed, labour standards for core workers in Italy were actually strengthened. This discrepancy reflects the limited focus of the OECD data.