Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-06T12:55:58.300Z Has data issue: false hasContentIssue false

The Left and Organized Labor in Low-Inflation Times

Published online by Cambridge University Press:  08 April 2013

Marco Simoni*
Affiliation:
European political economy at the European Institute of the London School of Economics and Political Science. Email: [email protected].
Get access

Abstract

This article presents fresh empirical data showing that policy alignment between center-left governments and trade unions was a sustained feature of European politics between 1974 and 2005. this contradicts expectations of a wide delinkage between the electoral left and labor as a consequence of globalization, deindustrialization, and unionization decline. However, structural economic change has altered the policy field so that sustained policy alignment can no longer be explained by existing theoretical frameworks.

Based on a theoretical argument and a multivariate empirical test, the article contends that policy alignment is likelier to occur if labor plays an important role in economic management at the microlevel and the industry level and if unions are politically cohesive agents thanks to powerful confederation leadership supported by democratic decision-making practices. in making its case, the article bridges the literatures on comparative capitalism and party politics, in order to account for change and continuity in policy-making processes.

Type
Research Article
Copyright
Copyright © Trustees of Princeton University 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ai, Chunrong, and Norton, Edward C.. 2003. “Interaction Terms in Logit and Probit Models.” Economics Letters 80: 123–29.CrossRefGoogle Scholar
Astudillo Ruiz, Javier. 2001. “Without Unions, but Socialist: The Spanish Socialist Party and Its Divorce from Its Union Confederation.” Politics and Society 29, no. 2: 271–94.Google Scholar
Auer, Peter. 2000. Employment Revival in Europe: Labour Market Success in Austria, Denmark, Ireland and the Netherlands. Geneva, Switzerland: ILO.Google Scholar
Avdagic, Sabina. 2010. “When Are Concerted Reforms Feasible? Explaining the Emergence of Social Pacts in Western Europe.” Comparative Political Studies 43, no. 5: 628–57.CrossRefGoogle Scholar
Baccaro, Lucio. 2003. “What Is Dead and What Is Alive in the Theory of Corporatism.” British Journal of Industrial Relations 41, no. 4: 683706.CrossRefGoogle Scholar
Baccaro, Lucio, and Locke, Richard M.. 1998. “End of Solidarity? The Decline of Egalitarian Wage Policies in Italy and Sweden.” European Journal of Industrial Relations 4, no. 3: 283308.CrossRefGoogle Scholar
Baccaro, Lucio, and Simoni, Marco. 2007. “The Irish Social Partnership and the ‘Celtic Tiger’ Phenomenon.” Industrial Relations 46, no. 3: 426–69.CrossRefGoogle Scholar
Baccaro, Lucio, and Simoni, Marco. 2008. “Policy Concertation in Europe: Explaining Government's Choice.” Comparative Political Studies 41, no. 10: 1323–48.CrossRefGoogle Scholar
Baccaro, Lucio, and Simoni, Marco. 2010. “Institutional Determinants of Wage Moderation.” World Politics 62, no. 4 (October): 594635.CrossRefGoogle Scholar
Beck, Nathaniel, Katz, Jonathan N., and Tucker, Richard. 1998. “Tacking Time Seriously: Time-Series-Cross-Section Analysis with a Binary Dependent Variable.” American Journal of Political Science 42, no. 4: 1260–88.CrossRefGoogle Scholar
Berry, William D., DeMeritt, Jacqueline H. R., Esarey, Justin. 2010. “Testing for Interaction in Binary Logit and Probit Models: Is a Product Term Essential?American Journal of Political Science 54, no. 1: 248–66.CrossRefGoogle Scholar
Boix, Carles. 1998. Political Parties, Growth and Equality: Conservative and Social Democratic Economic Strategies in the World Economy. Cambridge, UK, and New York, N.Y.: Cambridge University Press.CrossRefGoogle Scholar
Bonoli, Giuliano. 2001. “Political Institutions, Veto Points, and the Process of Welfare State Adaptation.” In Pierson, Paul, ed., The New Politics of the Welfare State. Oxford, UK: Oxford University Press: 238–64.CrossRefGoogle Scholar
Budge, Ian, Klingemann, Hans-Dieter, Volkens, Andrea, and Bara, Judith. 2006. Mapping Policy Preference II: Estimates for Parties, Electors and Governments in Eastern Europe, the European Union and the OECD, 1990–2003. Oxford, UK: Oxford University Press.Google Scholar
Budge, Ian, Klingemann, Hans-Dieter, Volkens, Andrea, Bara, Judith, and Tanenbaum, Eric. 2001. Mapping Policy Preferences: Estimates for Parties, Electors and Governments. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Cameron, David. 1984. “Social Democracy, Corporatism, Labour Quiescence, and the Respresentation of Economic Interest in Advanced Capitalist Society.” In Goldthorpe, J. H., ed., Order and Conflict in Contemporary Capitalism. Oxford, UK: Clarendon: 143–78.Google Scholar
Carlin, Wendy, and Soskice, David. 2009. “German Economic Performance: Disentangling the Role of Supply-Side Reforms, Macroeconomic Policy and Coordinated Economy Institutions.” Socio-Economic Review 7, no. 1: 6799.CrossRefGoogle Scholar
Crouch, Colin. 1988. “Trade Unions in the Exposed Sectors.” In Brunetta, R. and Dell'Aringa, C., eds., Labour Relations and Economic Performance. London, UK: Macmillan: 6891.Google Scholar
Crouch, Colin. 2000. “The Snakes and Ladders of Twenty-first-Century Trade Unionism.” Oxford Review of Economic Policy 16, no. 1: 7083.CrossRefGoogle Scholar
Culpepper, Pepper. 2002. “Powering, Puzzling and “Pacting”: The Informational Logic of Negotiated Reforms.” Journal of European Public Policy 9, no. 5: 774–90.CrossRefGoogle Scholar
Ebbinghaus, Bernhard, Göbel, Claudia, and Koos, Sebastian. 2011. “Social Capital, ‘Ghent’ and Workplace Contexts Matter: Comparing Union Membership in Europe.” European Journal of Industrial Relations 17, no. 2: 107–24.CrossRefGoogle Scholar
Egger, Philippe, and Sengenberger, Werner, eds. 2003. Decent Work in Denmark: Employment, Social Efficiency and Economic Security. Geneva, Switzerland: International Labour Office.Google Scholar
Franzese, Robert J. 2001. “Institutional and Sectoral Interactions in Monetary Policy and Wage/Price-Bargaining.” In Hall, P. A. and Soskice, D., eds., Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. New York, N.Y.: Oxford University Press: 100144.Google Scholar
Garrett, Geoffrey. 1998. Partisan Politics in the Global Economy. New York, N.Y., and Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Garrett, Geoffrey, and Way, Christopher. 1999. “Public Sector Unions, Corporatism, and Macroeconomic Performance.” Comparative Political Studies 32, no. 4: 411–34.CrossRefGoogle Scholar
Glyn, Andrew. 1998. “The Assessment: Economic Policy and Social Democracy.” Oxford Review of Economic Policy 14, no. 1: 118.CrossRefGoogle Scholar
Glyn, Andrew, ed. 2001. Social Democracy in Neoliberal Times: The Left and Economic Policy since 1980. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Glyn, Andrew, and Wood, Stewart. 2001. “New Labour's Economic Policy.” In Glyn, Andrew, ed., Social Democracy in Neoliberal Times: The Left and Economic Policy since 1980. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Golden, Miriam, Lange, Peter, and Wallerstein, Michael. 2006. Union Centralization among Advanced Industrial Societies: An Empirical Study. Data set available at http://www.shelley.polisci.ucla.edu/.Google Scholar
Hall, Peter A., and Gingerich, Daniel W.. 2009. “Varieties of Capitalism and Institutional Complementarities in the Macroeconomy: An Empirical Assessment.” British Journal of Political Science 39, no. 3: 449–82.CrossRefGoogle Scholar
Hall, Peter A., and Soskice, David. 2001. “An Introduction to Varieties of Capitalism.” In Hall, P. A. and Soskice, D., eds., Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. New York, N.Y.: Oxford University Press: 168.CrossRefGoogle Scholar
Hancké, Bob, and Rhodes, Martin. 2004. “EMU and Labor Market Institutions in Europe: The Rise and Fall of National Social Pacts.” Work and Occupations 32, no. 2: 196228.CrossRefGoogle Scholar
Hancké, Bob, Rhodes, Martin, and Thatcher, Mark, eds. 2007. Beyond Varieties of Capitalism: Conflict, Contradictions, and Complementarities in the European Economy. New York, N.Y.: Oxford University Press: 168.CrossRefGoogle Scholar
Hardiman, Niamh. 1988. Pay, Politics, and Economic Performance in Ireland 1970–1987. Oxford, UK: Clarendon Press.Google Scholar
Heery, Edmund. 1998. “The Relaunch of the Trades Union Congress.” British Journal of Industrial Relations 36, no. 3: 339–60.CrossRefGoogle Scholar
Hemerijck, Anton C., and Schludi, Martin. 2000. “Sequences of Policy Failures and Effective Policy Responses.” In Scharpf, F. W. and Schmidt, V. A., eds., Welfare and Work in the Open Economy, vol. 1, From Vulnerability to Competitiveness in Comparative Perspective. Oxford, UK: Oxford University Press.Google Scholar
Hicks, Alexander, and Kenworthy, Lane. 1998. “Cooperation and Political Economic Performance in Affluent Democratic Capitalism.” American Journal of Sociology 103, no. 6: 1631–72.CrossRefGoogle Scholar
Inglehart, Ronald. 1987. “Value Change in Industrial Societies.” American Political Science Review 81, no. 4: 12891303.CrossRefGoogle Scholar
Hyman, Richard. 2001. Understanding European Trade Unionism: Between Market, Class and Society. London, UK: SageCrossRefGoogle Scholar
Iversen, Torben. 1999. Contested Economic Institutions: The Politics of Macroeconomics and Wage Bargaining in Advanced Democracies. Cambridge, UK: Cambridge University Press.Google Scholar
Kenworthy, Lane. 2003. “Quantitative Indicators of Corporatism.” International Journal of Sociology 33, no. 3: 1044.CrossRefGoogle Scholar
King, Desmond, and Wood, Stewart. 1999. “The Political Economy of Neoliberalism: Britain and the United States in the 1980s.” In Kitschelt, H., Lange, P., Marks, G., and Stephens, J. D., eds., Continuity and Change in Contemporary Capitalism. Cambridge, UK, and New York, N.Y.: Cambridge University Press: xvi, 527.Google Scholar
Kitschelt, Herbert. 1994. The Transformation of European Social Democracy. Cambridge, UK, and New York, N.Y.: Cambridge University Press.CrossRefGoogle Scholar
Kitschelt, Herbert. 1999. “European Social Democracy between Political Economy and Electoral Competition.” In Kitschelt, H., Lange, P., Marks, G., and Stephens, J. D., eds., Continuity and Change in Contemporary Capitalism.. Cambridge, UK, and New York, N.Y.: Cambridge University Press: 317–45.CrossRefGoogle Scholar
Korpi, Walter. 2006. “Power Resources and Employer-Centered Approaches in Explanations of Welfare States and Varieties of Capitalism: Protagonists, Consenters, and Antagonists.” World Politics 58, no. 2 (January): 167206.CrossRefGoogle Scholar
Mares, Isabela. 2006. Taxation, Wage Bargaining, and Unemployment. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
McIlroy, John. 1998. “The Enduring Alliance? Trade Unions and the Making of New Labour, 1994–1997.” British Journal of Industrial Relations 36, no. 4: 537–64.CrossRefGoogle Scholar
McIlroy, John. 2000. “The New Politics of Pressure: The Trades Union Congress and New Labour in Government.” Industrial Relations Journal 31, no. 1: 216.CrossRefGoogle Scholar
McNamara, Kathleen R. 2002. “Rational Fictions: Central Bank Independence and the Social Logic of Delegation.” West European Politics 25, no. 1: 4776.CrossRefGoogle Scholar
Notermans, Ton. 2000. Money, Markets, and the State: Social Democratic Economic Policies since 1918. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Olson, Mancur. 1982. The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. New Haven, Conn., and London, UK: Yale University Press.Google Scholar
Pierson, Paul. 1996. “The New Politics of the Welfare State.” World Politics 48, no. 2 (January): 143–79.CrossRefGoogle Scholar
Pizzorno, Alessandro. 1978. “Political Exchange and Collective Identity in Industrial Conflict.” In Crouch, C. and Pizzorno, A., eds., The Resurgence of Class Conflict in Western Europe since 1968. London, UK: Macmillan.Google Scholar
Pontusson, Jonas. 1995. “Explaining the Decline of European Social Democracy: The Role of Structural Economic Change.” World Politics 47, no. 4 (July): 495533.CrossRefGoogle Scholar
Przeworski, Adam. 1985. Capitalism and Social Democracy. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Przeworski, Adam. 2001. “How Many Ways Can Be Third?” In Glyn, A., ed., Social Democracy in Neoliberal Times: The Left and Economic Policy since 1980. Oxford, UK: Oxford University Press: 312–33.CrossRefGoogle Scholar
Regini, Marino. 1984. “The Conditions for Political Exchange: How Concertation Emerged and Collapsed in Italy and Great Britain.” In Goldthorpe, J. H., ed., Order and Conflict in Contemporary Capitalism. Oxford, UK: Clarendon: 124–42.Google Scholar
Regini, Marino. 2003. “Tripartite Concertation and Varieties of Capitalism.” European Journal of Industrial Relations 9, no. 3: 245–64.CrossRefGoogle Scholar
Rhodes, Martin. 2001. “The Political Economy of Social Pacts: ‘Competitive Corporatism’ and European Welfare Reform.” In Pierson, Paul, ed., The New Politics of the Welfare State. Oxford, UK: Oxford University Press: 165–94.CrossRefGoogle Scholar
Rothstein, Bo. 1992. “Labour-Market Institutions and Working-Class Strength.” In Steinmo, S., Thelen, K. A., and Longstreth, F. H., Structuring Politics: Historical Institutionalism in Comparative Analysis. Cambridge, UK; New York: Cambridge University Press: 3356.CrossRefGoogle Scholar
Rueda, David. 2007. Social Democracy Inside Out: Partisanship and Labor Market Policy in Industrialized Democracies. Oxford, UK, and New York, NY: Oxford University Press.CrossRefGoogle Scholar
Sassoon, Donald. 1997. One Hundred Years of Socialism. London, UK: Fontana Press.Google Scholar
Scharpf, Fritz W. 1991. Crisis and Choice in European Social Democracy. Ithaca, N.Y.: Cornell University Press.Google Scholar
Schmitter, Philippe. 1979. “Still the Century of Corporatism?” In Schmitter, P. and Lehmbruch, G., Trends towards Corporatist Intermediation. London, UK: Sage: 752.Google Scholar
Simoni, Marco. 2007. “The Renegotiated Alliance between the Left and Organized Labour in Western Europe.” Ph.D. diss., London School of Economics and Political Science.Google Scholar
Simoni, Marco. 2010. “Labour and Welfare Reforms: The Short Life of Labour Unity in Contemporary Italy.” In Mammone, Andrea and Veltri, Giuseppe A., eds., Italy Today: The Sick Man of Europe. New York, N.Y.: Routledge.Google Scholar
Thelen, Kathleen A. 2001. “Varieties of Labor Politics in the Developed Democracies.” In Hall, P. A. and Soskice, D., eds., Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. New York, N.Y.: Oxford University Press.Google Scholar
Visser, Jelle. 2007. “Trade Union Decline and What Next: Is Germany a Special Case?Industrielle Beziehungen 14, no. 2: 97117.Google Scholar
Visser, Jelle. 2011 The ICTWSS Database. Amsterdam Institute for Advanced Labour Studies. At http://www.uva-aias.net/208.Google Scholar
Wallerstein, Michael, Golden, Miriam, and Lange, Peter. 1997. “Unions, Employers' Associations, and Wage-Setting Institutions in Northern and Central Europe, 1950–1992.” Industrial and Labor Relations Review 50, no. 3: 379401.Google Scholar
Webb, Sydney, and Webb, Beatrice. 1898. History of Trade Unionism. London, UK: Longmans.Google Scholar