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The Flexibility of Labour Markets and the Elite-Orientated Education of Liberal Market Economies in the Uk and the Us Result in Higher Degrees of Inequality Compared to Coordinated Market Economies. Discuss.

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The flexibility of labour markets and the elite-orientated education of liberal market economies in the UK and the US result in higher degrees of inequality compared to coordinated market economies. Discuss.

Student ID: 0956592

Word count (excluding references): 2492

This paper will discuss and analyze whether the flexibility of labour markets and the elite orientated education in liberal market economies, found in the UK and the US are the only reasons for higher degrees of inequality, compared to coordinated market economies. In order to understand the labour markets of liberal market economies and coordinated market economies, they must be defined in terms of their differences, which can affect the flexibility of their labour markets. Furthermore, it is important to note that there are numerous inequalities which may emerge in this analysis. Namely, gender inequality, class inequality, and wage inequality as well as some other perspectives will be examined. The aim of this paper is recognize which inequalities are more prominent in either liberal market economies or coordinated market economies, in relation to the flexibility of relevant labour market. Drawing on the work of Polanyi (1994), Esteves-Abe et al. (2001) suggest that market failures in economies can be avoided depending on the type and the extent of the social protection offered from national institutions. Liberal market economies, such as the US and UK, have an institutional framework which accents “general competences and skills”, deregulated labour markets within which management is largely in control, a short-term profitability corporate governance structure, and a market which is competitive in transfers of technology (Soskice, 2005:171). In contrast, in coordinated market economies, such as Germany and Japan, and other Northern European countries, business is much more coordinated by

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