Labour historiography traditionally has been less than eager to incorporate modern economic theory into its works preferring instead to look toward sociology, anthropology, and, more recently, literary theory for both inspiration and analytical perspective. Given the facts that most labour historians lack advanced training in economics and that they often ...
(Show more)Labour historiography traditionally has been less than eager to incorporate modern economic theory into its works preferring instead to look toward sociology, anthropology, and, more recently, literary theory for both inspiration and analytical perspective. Given the facts that most labour historians lack advanced training in economics and that they often find a more sympathetic environment within the other social sciences, this reluctance is understandable.
This paper will discuss two areas of contemporary economic research that may be usefully employed by labour historians, especially those working on shop floor industrial relations, to broaden the scope and breadth of their work. The first is that of the contribution of game theory to the analysis of collective bargaining. In particular, this paper will suggest that the current study of “reputational effects” in bargaining theory potentially provides significant insights into the social foundations of industrial relations. Second, this paper will discuss what labour historians may learn from the work of George Akerlof, the Nobel prize-winning economist, whose “efficiency wage hypothesis” not only overturns much traditional neoclassical thinking, but also incorporates notions of honor, respect, and reputation as important analytical elements of shop floor relations.
In conclusion, while economic theory often has lost its influence among labour historians, who themselves have sought inspiration in other social sciences, this paper suggests that there are several areas of current economic research that bear directly upon out work and can usefully be employed to further our understanding of the social history of labour.
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