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Comparative Political Studies
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Emerging Varieties of Capitalism in Transition Countries

Industrial Relations and Wage Bargaining in Estonia and Slovenia

Magnus Feldmann

Harvard University, Cambridge, Massachusetts

This article analyzes patterns of economic coordination in Estonia and Slovenia, two postsocialist countries in Central and Eastern Europe, by using the varieties of capitalism (VOC) framework. The article argues that Estonia and Slovenia are very good examples of liberal and coordinated market economies. Market-based coordination of economic relations predominates in Estonia, whereas Slovenia has highly institutionalized coordination. Industrial relations and wage bargaining arrangements are the main focus, but other areas studied by the VOC literature are briefly considered as well. The article also accounts for the origins of these arrangements by examining the interaction of two sets of factors: economic organization and industrial relations under the old system, on one hand, and strategic policy choices, especially the effects of privatization and monetary policy on formalizing coordination, on the other. The article considers some general implications of this analysis for studying successful postsocialist transition and comparative capitalism.

Key Words: capitalism • postsocialist transition • industrial relations • wage bargaining • Estonia • Slovenia

Comparative Political Studies, Vol. 39, No. 7, 829-854 (2006)
DOI: 10.1177/0010414006288261


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