Abstract
The paper develops an explanatory model of comparative industrial relations and labour market structures based on national culture. The four cultural variables derived by Hofstede (Culture’s Consequences, Beverly Hills: Sage, 1984) are used to investigate the relationship between national culture and various dimensions of industrial relations and pay structures. The paper finds national culture to be associated with the centralization of bargaining, the extent of corporatism, the degree of co‐ordination in bargaining, the coverage of collective bargaining, trade union density, the extent of worker participation in decision making, and most dimensions of the pay structure. Hofstede’s MAS variable, measuring cultural values representing gender social structuring, is associated with both industrial relations institutions and the pay structure. The results provide support for our cultural model.
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