"Southern European" capitalism and the social costs of business enteprise

The literature on varieties of capitalism advanced the idea of a “Southern European” typology of capitalism. This kind of economic system is charac- terised by institutions that have evolved in a situation of “late development” and that share some broad similarities. This paper discusses the connection between social costs and institutions as well as the definition of social costs relative to an idea of socio-economic progress. The Southern European insti- tutional configuration can be described as “dis-functional” as far as it appears unable to limit social costs. Finally, a taxonomy of social costs is dis- cussed and some evidence of their higher level in these countries is presented.