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The Power Resource Theory Revisited:What Explains the Decline in Industrial Conflicts in Sweden?

Author

Listed:
  • Molinder, Jakob

    (Department of Economic History, Uppsala University)

  • Karlsson, Tobias

    (Department of Economic History, Lund University)

  • Enflo, Kerstin

    (Department of Economic History, Lund University)

Abstract

This paper revisits the Power Resource Theory (PRT) by testing one of its more influential claims: the relation between the strength of the labor movement and the reduction of industrial conflicts. Using panel data techniques to analyze more than 2,000 strikes in 103 Swedish towns we test whether a shift in the balance of power towards Social Democratic rule was associated with fewer strikes. The focus is on the formative years between the first general election in 1919 and 1938, when Sweden went from a country of fierce labor conflicts to a state of industrial peace. We find that Social Democratic power reduced strikes, but only in towns where union presence was strong. We do not see any tangible concessions in terms of increased social spending by local governments after a left-wing victory as predicted by PRT. Instead the mechanism leading to fewer strikes appears to be related to corporatist explanations.

Suggested Citation

  • Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2019. "The Power Resource Theory Revisited:What Explains the Decline in Industrial Conflicts in Sweden?," Lund Papers in Economic History 207, Lund University, Department of Economic History.
    • Handle: RePEc:hhs:luekhi:0207
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    References listed on IDEAS

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    4. Kerstin Enflo & Tobias Karlsson, 2019. "From conflict to compromise: the importance of mediation in Swedish work stoppages 1907–1927," European Review of Economic History, European Historical Economics Society, vol. 23(3), pages 268-298.
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    Cited by:

    1. Enflo, Kerstin & Molinder, Jakob & Karlsson, Tobias, 2019. "More Power to the People: Electricity Adoption, Technological Change and Social Conflict," CEPR Discussion Papers 13986, C.E.P.R. Discussion Papers.
    2. Eric Melander, 2020. "Transportation Technology, Individual Mobility and Social Mobilisation," CAGE Online Working Paper Series 471, Competitive Advantage in the Global Economy (CAGE).

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    More about this item

    Keywords

    Power Resource Theory; industrial conflicts; strikes; labor markets; local politics;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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