Industrial Paternalist Capitalism and Local Labour Markets

Abstract

This paper is an attempt to identify those structural conditions which are conducive to the rise and maintenance of industrial paternalist capitalism within Britain. Following Newby's discussion of the nature of deference industrial paternalism is defined as the specific form taken in Britain by economic and political structures in which the unequal distribution of resources is legitimated by tradition. A key factor in the maintenance of such systems of traditional authority is the nature of the owners of local productive capacity. Two features are emphasized; the extent to which local assets constitute the bulk of all capital owned by the local bourgeoisie and the existence of historical links between such owners of local capital and the area. Empirical measures of the nature of local labour markets are used to identify those areas of the country which contain the structural features most likely to support industrial paternalism. It is suggested that such areas can be characterized as relatively isolated local labour markets which are dominated by single companies.