Industrial Relations, Social Pacts and Welfare Expenditures: A Cross-national Comparison
Industrial relations and welfare state are interrelated. On the basis of time-series data for 20 OECD countries, this paper discusses and tests the impact of industrial relations on social expenditures, including 'social pacts' as a means of combining wage moderation and welfare state reforms. The findings suggest that industrial relations have an impact mainly through the differential effects of distinct bargaining systems: a minor impact results from their externalities. The major impact ensues from their differing degrees of politicization, leading to higher expenditures in the case of peak-level arrangements, as compared to more decentralized systems. Hence, the widely assumed potential of social pacts for welfare state reforms has been exaggerated. Copyright Blackwell Publishing Ltd/London School of Economics 2005.
Year of publication: |
2005
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Authors: | Brandl, Bernd ; Traxler, Franz |
Published in: |
British Journal of Industrial Relations. - London School of Economics (LSE). - Vol. 43.2005, 4, p. 635-658
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Publisher: |
London School of Economics (LSE) |
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