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ment policies ? Education, skills, and work incentives ? Information and other technology ? Competition and trade 6 New Labor Market: Shared Capitalist Model of Work and Welfare Principle Features ? Linking pay to pany performance ? Linking social benefits to work ? Individualizes/privatizes rights and benefits 7 New labor Market: Strengths Improves efficiency ? Greater incentive to work and work efficiently ? Aligns employee and employer financial interest ? Decentralizes enforcement of labor laws (dispute resolution through private arbitrators or individual courts) ? Helps extend full employment (lower unemployment rate and wage inflation) 8 New Labor Market: Weakness Less insurance against risk ? Shifts some risk from capital to labor ? Workers