A Theory of Employment Systems considers why there are such great international differences in the way employment relations are organized within the firm. Taking account of the growing evidence that international diversity is not being wiped out by 'globalization', it sets out from the theory of...

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is more widespread in France than in Britain. We explain this finding in terms of the "beneficial constraint" arising from stronger employment protection in France, which provides...