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Industrial Relations, Social Pacts and Welfare Expenditures: A Cross‐national Comparison

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  • Bernd Brandl
  • Franz Traxler

Abstract

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.

Suggested Citation

  • Bernd Brandl & Franz Traxler, 2005. "Industrial Relations, Social Pacts and Welfare Expenditures: A Cross‐national Comparison," British Journal of Industrial Relations, London School of Economics, vol. 43(4), pages 635-658, December.
    • Handle: RePEc:bla:brjirl:v:43:y:2005:i:4:p:635-658
    DOI: 10.1111/j.1467-8543.2005.00477.x
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    References listed on IDEAS

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    1. Strange,Susan, 1996. "The Retreat of the State," Cambridge Books, Cambridge University Press, number 9780521564298.
    2. Strange,Susan, 1996. "The Retreat of the State," Cambridge Books, Cambridge University Press, number 9780521564403.
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    Cited by:

    1. Olaf van Vliet & Ferry Koster, 2011. "Europeanization and the political economy of active labour market policies," European Union Politics, , vol. 12(2), pages 217-239, June.
    2. Hao ZHANG & Eli FRIEDMAN, 2021. "Faltering standardization: Conflict and labour relations in China's taxi and sanitation industries," International Labour Review, International Labour Organization, vol. 160(3), pages 363-385, September.
    3. Simon Sturn, 2011. "Labour market regimes and unemployment in OECD countries," IMK Working Paper 6-2011, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Simon STURN, 2013. "Are corporatist labour markets different? Labour market regimes and unemployment in OECD countries," International Labour Review, International Labour Organization, vol. 152(2), pages 237-254, June.

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