Varieties of Capitalism and Employment Relations: Informally Dominated Market Economies




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    •  The authors’ affiliation is University of Sheffield, 9, Mappin Street, Sheffield S1 4DT, UK. E-mail: The research was supported by the Royal Geographical Society (with the Institute of British Geographers) with an EPSRC Geographical Research grant: EPSRC 1/05. The authors also acknowledge, with thanks, the time and insights provided by interviewees during fieldwork visits and the valuable comments provided by anonymous reviewers.


The varieties of capitalism and employment relations literature have largely focused on formally regulated market economies, with a general neglect of the informal economy and of emerging markets where this work arrangement is dominant. In this article, however, the intention is to propose the Informally Dominated Market Economy as a form of capitalism that could be usefully incorporated into the industrial relations literature. To start to unpack this variety of capitalism, this article explores institutions and employment relations practices in the African economy of Mozambique. The outcome is a conceptual framework that includes both formal and informal institutions and considers the implications for work and employment relations.