The ‘Administered Labor Market’ Reconsidered

Abstract

This article examines the continued relevance of William Dugger’s theory of the ‘Administered Labor Market’ written in the early 1980s. The white-collar ‘administered labor market’ of the ‘old economy’ continues to exist alongside the more ‘market-oriented’ labor markets of the ‘new economy’. While long-term employment relationships are somewhat less common, white-collar workers still build their careers primarily through promotions within their companies rather than by changing firms. While contingent compensation is more prevalent, wage structures are still relatively rigid particularly in larger, older firms. The changes which have occurred in ‘administered labor markets’ are more ‘matters of degree’ than ‘matters of kind’.