Why did the transnational synchronization of wage inflations fail during the first 10 years of the euro? We analyze data from 1999 to 2008 for 12 euro members and estimate increases of nominal unit labor costs both in the overall economy and in manufacturing as dependent variables. While our analysis confirms that differences in economic growth shaped the inflation of labor costs, we add a political-institutional argument to the debate and argue that the designs of the wage regimes had an additional, independent impact. In coordinated labor regimes, increases in nominal unit labor costs tended to fall below the European Central Bank’s inflation target, while in uncoordinated labor regimes, the respective increases tended to exceed the European inflation target. Due to the stickiness of wage-bargaining institutions, the lack of the capacity to synchronize inflation is not likely to disappear in the foreseeable future.

Social scientists and political theorists often claim that shared values are conducive to social cohesion, and trust and solidarity in particular. Furthermore, this idea is at the heart of what has been labeled the ‘national identity argument’, according to which religious and/or cultural diversity is a threat to the shared (national) values underpinning social cohesion and redistributive justice. However, there is no consensus among political theorists about what values we need to share to foster social cohesion and indeed, for example, nationalists, liberals, and multiculturalists provide different answers to this question. On the basis of a survey conducted in Denmark in 2014, this study empirically investigates the relation between, on the one hand, commitments to the community values of respectively conservative nationalism, liberal nationalism, liberal citizenship, and multiculturalism, and on the other, trust and solidarity. First, we investigate in what ways commitments to these four sets of values are correlated to trust and solidarity at the individual level and, then, whether the belief that others share one’s values is correlated to these aspects of social cohesion for individuals committed to these four sets of values. We find that conservative and liberal nationalism are negatively correlated to our different measures of trust and solidarity, whereas liberal citizenship and (in particular) multiculturalism are positively correlated. In broad terms, this picture remains when we control for a number of socio-economic factors and ideology (on a left-right scale). Finally, individuals who believe that others share their values do not, in general, have higher levels of trust and solidarity. Rather, this belief works in different ways when associated with different sets of community values.

Traditional research on preferences for redistributive social policy suggest increasingly complex models of public opinion formation that envision individuals balancing normative concerns against sophisticated calculations of economic self-interest. This research largely ignores the large body of evidence demonstrating significant differences in levels of political awareness across the population that strongly influence the quality, structure, and determinants of political preferences. Analyzing public opinion data for 14 European countries reveals that large sections of the population do not appear to hold or express social policy preferences that are internally consistent or well-grounded in either their self-interests or ideological predispositions. At low levels of political awareness, little discernible connection exists between seemingly related preferences for redistribution, levels of social spending, left–right positioning, tolerance for inequality, or overall support for the welfare state. Moreover, income, a theoretically central causal variable, has no effect on attitudes toward redistribution when political awareness is low. These results pose a significant challenge to existing models of social policy preferences.