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Bismarck's Welfare State and the Socialists

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  • Felix Kersting

Abstract

This paper examines the political consequences of introducing the welfare state targeted at blue-collar workers in 19th-century Germany. I conceptualize Bismarck’s reform as an accommodation strategy to combat the socialist party as an emerging challenger party. The result of a difference-in-differences design shows that the socialist party benefited in elections due to the reform. The mechanism analysis points to the socialists’ issue ownership by adopting a stronger reformist stance. The results are not driven by other political and economic channels related to the reform.

Suggested Citation

  • Felix Kersting, 2025. "Bismarck's Welfare State and the Socialists," Berlin School of Economics Discussion Papers 0081, Berlin School of Economics.
  • Handle: RePEc:bdp:dpaper:0081
    DOI: 10.48462/opus4-5989
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    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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