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Rational expectations proved to be the only analytical novelty employed by the NCE, although the results were dramatically negative, especially from a Keynesian perspective, as a consequence of the assumption of instantaneous market-clearing. But the position of theoretical prominence occupied by the NCE has proved both temporary and short-lived—hardly surprising, given that it is a one-idea innovation. Yet, as argued above, it played a crucial, if perverse, role in tiding over the crisis in macroeconomic theory.
1 The SCELI research was based on surveys in six different local labour markets between 1986 and 1987, initially covered around 1,000 individuals in each location, including information on experiences of employment and unemployment, attitudes to work, and household strategies and activities. In addition, surveys were undertaken of local employers. Consequently, the research programme was provided with a sound empirical basis from which to explore the dynamics and structures of labour markets. For the gendering of labour markets, as addressed by Scott (1994a), the following multiplicity of factors emerge as important: attitudes, skills, work experience, class, marital and life-cycle status, public and private and parttime and full-time employment, interaction with domestic roles, and geographical mobility.
Chapter 4 covers material more like that of Chapter 2 addressing systemic or macro factors. It addresses two apparently unconnected branches of the literature—that concerned with flexibility and that with (non-market) institutions. But the two subject-matters do have something in common—each is an analytical response to the recognition that the market necessarily interacts with non-market factors. The market does not exist in a vacuum. The flexibility literature has arisen out of the empirically inspired suspicion that non-market factors were being driven out by market forces, signalling the end of the Fordist, Keynesian and/or welfarist post-war boom.
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