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.