This study examines the determination of employment and pay on “capitalist” and “kinship” vessels in the New England fishing industry. Capitalist vessels resemble standard competitive firms in the way that employment and pay respond to changing market conditions; kinship vessels operate under work guarantees and income sharing rules. These differences in institutional rules lead to different patterns of income, employment, growth, and labor adjustment. The study shows how an understanding of the institutional structure of labor markets can contribute to the design of public policies to facilitate adjustment to change and to promote industrial growth.
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