This paper presents the results of a factor analysis, based on the information provided by 70 variables for 26 Member States, identifying three main dimensions that explain good labour market and social outcomes.

The results broadly confirm the taxonomy proposed in the "Variety of Capitalism" (VoC) literature: Coordinated Market Economies include the Northern Member States (plus NL, DE), showing evidence that social institutions matter: Market coordination through social dialogue between workers and firms is supportive of economic success and resilience. Institutions are conducive to high employment standards and high labour productivity, notably as they help make effective use of workers' qualifications and talents (i.e., they improve matching). Further regression analyses on micro data support these findings.

Pieejams