Chapter

The Institutional Legacies of Incorporation

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Abstract

Corporatism has been described as an exchange based on an interplay between inducements and constraints, both of which are mechanisms used to influence behavior and achieve control.1 If inducements are offered to produce compliance by the granting of advantages, constraints produce compliance by the application or threat of “disadvantages” or negative sanctions. The particular combination of inducements and constraints determines the resulting type of corporatism and the mix of control, representation, and mobilization. A critical factor explaining the Mexican regime’s ability to retain the loyalty of workers while restructuring in the 1990s is the type of inducements employed; inducements in the form of welfare benefits and subsidies are less likely to induce loyalty (particularly when austerity measures are retrenching these benefits) than inducements that offer career incentives, channels for representation and the expression of grievances, and input in policymaking.

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