Labour Market Restructuring and Polarization Processes: The Significance of Political-institutional Factors

Abstract

Theories on the restructuring of post-industrial labour markets postulate that polarization processes induce a cleavage between those inside and those outside the labour market, or/and increasing differences between workers belonging to the core versus the periphery of the labour market. This article critically explores the polarization postulates and their potential consequences for gender and class divisions. It is argued that the effects of labour market restructuring must be understood in their specific political and institutional context, one in which the state and industrial relations influence the operation of labour markets and the organization of work. As the case for examining the impact of political-institutional factors on labour market restructuring, one of the Scandinavian countries, Norway, is selected. The focus is particularly on the impact of consensus-building institutions, social investment strategies and the balance between capital and labour.