Search

Begin New Search Topic Economics Political Geography Europe Content Type Working Paper Publishing Institution Minda de Gunzburg Center for European Studies, Harvard University

41. Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence

Author:
Dean Baker, John Schmitt, and Andrew Glyn
Publication Date:
05-2003
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
In the last twenty five years, there has been a sharp divergence in trends in the unemployment rate among OECD countries, with some seeing much larger increases in unemployment than others. This divergence is usually explained by institutions that lead to labor market inflexibility – generous unemployment benefits, employment protections, and strong unions – in countries with high unemployment rates. This paper examines the evidence for this view. It shows that there is no simple bivariate relationship between standard measures of labor market institutions and unemployment rates across countries. It then critically examines several of the most often cited studies that support the labor market inflexibility view. It finds that these studies present relatively weak and to some extent contradictory support for the labor market inflexibility view. Finally, the paper presents the results of a set of tests designed to replicate some of the earlier multivariate analyses with more current data. These tests consistently fail to find robust evidence to support the labor market inflexibility view.
Topic:
Economics and International Organization
Political Geography:
Europe

42. Europeanization and the Retreat of the State

Author:
Volker Schneider and Frank M. Häge
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Is the state on the retreat? We examine this question through an analysis of changing patterns of government involvement in infrastructure provision, which is generally considered to be one of the primary functions of the modern state. Based on an analysis of the extent of privatization of infrastructure companies between 1970 and 2000 across twenty-six OECD countries, we find that there is indeed a general trend towards less public infrastructure provision visible in all of the countries and that the main factors associated with the extent of privatizations are EU membership and government ideology. We argue that the trend of privatizing infrastructure companies was triggered by a change of the prominent economic discourse in the 1970s and that a rightist party ideology and EU membership fostered the adoption and implementation of these ideas in domestic settings.
Topic:
Development, Economics, and Government
Political Geography:
Europe

43. Spain in the EU: fifteen years may not be enough

Author:
Miguel Sebastian
Publication Date:
11-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Europe has been the driving force of economic policy in Spain over the last four decades and the key factor behind the modernization and globalisation of the Spanish Economy. The accession to the EEC in 1986 was a crucial step in the process of economic and political integration.
Topic:
Economics and International Trade and Finance
Political Geography:
Europe

44. Temporary work agencies and equilibrium unemployment

Author:
Michael Neugart and Donald Storrie
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
A striking feature of OECD labor markets in the 1990s has been the very rapid increase of temporary agency work. We augment the equilibrium unemployment model as developed by Pissarides and Mortensen with temporary work agencies in order to focus on their role as matching intermediaries and to examine the aggregate impact on employment. Our model implies that the improvement in the matching efficiency of agencies led to the emergence and growth of temporary agency work. We also show that temporary agency work does not necessarily crowd out other jobs.
Topic:
Development, Economics, and Politics
Political Geography:
Europe

45. Building the Dual Earner/Dual Carer Society: Policy Developments in Europe

Author:
Marcia Meyers and Janet Gornick
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
A new model of work and family life is emerging out of contemporary debates on social citizenship and the characteristics of the “woman-friendly” welfare state. The dual-earner/ dual-carer model refers to a social and economic arrangement in which men and women engage symmetrically in both paid work in the labor market and in unpaid work in the home. Parents' ability to balance family and market responsibilities, and to allocate employment and childcare-giving equally between mothers and fathers, could be facilitated by a package of state policies. Three areas of supportive policy – all invarious states of development across Europe – include: (1) family leave schemes that provide job protections and wage replacement for parents of young children; (2) affordable, high quality early childhood education and care, to a limited extent for very young children and to a much larger extent for children aged three to school-age; and (3) labor market regulations aimed at shortening the standard work week and strengthening re-muneration for reduced-hour employment. In this paper, we review European policy provisions, and then turn our attention to the United States case. We suggest that embracing the vision of the dual-earner/ dual-carer society may help to draw diverse but unified support for family policy development in the United States.
Topic:
Economics, Government, and Human Welfare
Political Geography:
United States and Europe

46. Three Worlds of Working Time: Policy and Politics in Work-time Patterns of Industrialized Countries

Author:
Brian Burgoon and Phineas Baxandall
Publication Date:
09-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Given the underdeveloped attention to political and policy origins of aggregate work time patterns in the work-time literature, and the lack of any significant attention to work-time in the broader comparative political economy literature, this paper has pursues a broad mandate: to bring more politics into the study of work-time, and work-time into the study of politics. Using data allowing better comparison among OECD countries, we argue that study of working time needs to consider annual hours per employee and per working-age person, shaped by a range of social as well as direct work-time policies. We also argue that union interest in work-time reduction is more ambiguous than customarily supposed, with union interests likely mediated by a range of other conditions, especially female labor market participation and female union membership. Finally, we argue that attention to party systems and policy clusters should begin with consideration of Social Democratic, Liberal and Christian Democratic worlds of work time. We support these arguments with cross-section time-series study of 18 OECD countries, and brief qualitative studies of work-time in Finland, the United States, and the Netherlands.
Topic:
Economics and Industrial Policy
Political Geography:
United States, Europe, and Netherlands

47. Economic Policy Coordination in EMU: Institutional and Political Requirements

Author:
Stefan Collignon
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This paper looks at the macroeconomic performance of EMU since it started in 1999. It argues that Euroland has benefited from a benign environment, appropriate monetary policy and structural reforms. However, there is no institution clearly in charge of formulating coherent economic policies in Euroland and this is reflected in the euro's external value. The paper then evaluates the need for policy coordination, distinguishing between weak and strong forms of coordination failure. It shows that intergovernmental coordination may be an answer to the latter, pareto-improving multiple equilibria. However, overcoming weak coordination failure requires further policy delegation to the EU-level, particularly for the definition of an aggregate fiscal policy stance. Yet, this is only possible if the democratic deficit resulting from intergovernmental cooperation is closed by a European-wide policy consensus. To achieve this should be the objective of a European constitution.
Topic:
Economics, Government, and International Cooperation
Political Geography:
Europe

48. European Monetary Union: between the stakeholder and the stockholder models of capitalism

Author:
Carlos A. Rozo
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
From the mid-1980s on a new attitude towards self-determination appeared in Western European integration. With the Maastricht Treaty of 1992 and, later, with the Amsterdam Treaty of 1997 the member countries of the European Community manifested their determination to be active players in the new international order. Accepting and instituting the single market and monetary union constituted, however, a challenge of compatibility between the traditional model of welfare European capitalism and the impositions coming from globalization under the neo-liberal model of Anglo-Saxon capitalism. This issue is examined here under two perspectives. The first reviews the implications which globalization has had on the European model of capitalism and the second the complications for monetary management as Europe moves from a nationally regulated to a union regulated financial structure.
Topic:
International Relations, Economics, and Treaties and Agreements
Political Geography:
Europe

49. Decentralized Cooperation and the Future of Regulatory Reform

Author:
Pepper D. Culpepper
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Faced with the fact of sweeping regulatory reform, how do companies decide how to respond to a new set of policies? This paper argues that this problem requires a new conception of policymaking: a conception that recognizes the analytical primacy of achieving coordination under uncertainty. I call this challenge the problem of securing decentralized cooperation. Negotiated reforms are a common leitmotif of the current wave of reforms taking place in various European countries, whereas American attempts to reinvent government opt to replace the state with the market. There are general lessons in this approach for both strategies. Unlike the earlier attempts to establish neo-corporatist bargains at the national level in European countries, the success of bargained pacts in Europe will depend increasingly on allowing private actors to design the best solutions to centrally identified problems. The challenges of bringing private information to bear on public policy will increase in the future, and not only in supply-side economic policy reforms. One such area is environmental regulation, which is typically viewed as an area of pure state regulation. This is also an area where market-based solutions are frequently proposed as the most efficient solution to problems of pollution. As I demonstrate through the initiative of the Chesapeake Bay Program in the United States, the challenges identified above for areas of economic policymaking are now relevant to environmental initiatives, even in liberal market economies such as the US and the UK. The extent of government success in such initiatives will be determined by the ability of governments to understand the importance of private information and their capacity to develop private sector institutions that can help procure it. Attempts to replace a malfunctioning state with a market solution, currently very much in vogue in certain quarters in the United States, will fail, as long as they do not recognize the distinctive problems inherent in securing decentralized cooperation.
Topic:
Economics and Industrial Policy
Political Geography:
United States, United Kingdom, and Europe

50. Creating Stability: National Preferences and the Origins of European Monetary System

Author:
Mark Aspinwall
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This essay compares the preferences of France, Italy, and Britain on the creation of the European Monetary System in 1978-1979, especially the Exchange Rate Mechanism, which stabilised nominal exchange rates. My claim is that the different conclusions reached by the governments (France and Italy in, Britain out) cannot be explained by economic circumstances or by interests, and I elaborate an intervening institutional variable which helps explain preferences. Deducing from spatial theory that where decisionmakers 'sit' on the left-right spectrum matters to their position on the EMS, I argue that domestic constitutional power-sharing mechanisms privilege certain actors over others in a predictable and consistent way. Where centrists were in power, the government's decision was to join. Where left or right extremists were privileged, the government's decision was negative. The article measures the centrism of the governments in place at the time, and also reviews the positions taken by the national political parties in and out of government. It is intended to contribute to the growing comparativist literature on the European Union, and to the burgeoning literature on EU-member-state relations.
Topic:
Economics, Government, and International Cooperation
Political Geography:
Britain, Iraq, Europe, and France

51. East-West Integration and the Changing German Production Regime: A Firm-Centered Approach

Author:
Katharina Bluhm
Publication Date:
12-2000
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
With the opening of Central Eastern Europe German firms have gained access to low labor costs in close geographical proximity. Intense debate about the impact this has had on the “German model” of capitalism has ensued. This paper argues that, in fact, production shifts are taking place in which cost-cutting motives are an important guideline. German firms, however, hesitate to aggressively utilize this new option in their internal domestic labor policy. Rather, firms tend to avoid confrontations with their employees on “job exports”. The necessity of collaboration on both sides of the border, the relative strength of workers in the domestic high-quality production system, and the constraints of industrial relations provide explanations for the moderate behavior. So far, the outcome of the bargained reorganization is that firms gain more labor flexibility, performance-related differentiation, and labor-cost rationalization without challenging the institutionalized long-term employment commitments for their core workforce.
Topic:
Economics and Government
Political Geography:
Europe, Eastern Europe, and Germany

52. “Social Democracy, Globalization and Governance: Why is there no European Left Program in the EU?”

Author:
Christopher S. Allen
Publication Date:
09-2000
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This paper addresses globalization and governance in the EU by attempting to generate some plausible hypotheses that might explain the policy choices of the 12 out of 15 European democratic left governments. With all of the discussion in recent years of a democratic deficit, and then need to maintain a “social Europe,” why have these governments not produced more explicit left-wing policies?
Topic:
Democratization, Economics, and Government
Political Geography:
Europe and Germany

53. When Labour and Capital Collude: The Varieties of Welfare Capitalism and Early Retirement in Europe, Japan and the USA

Author:
Bernhard Ebbinghaus
Publication Date:
01-2000
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The institutionalisation of early retirement has become a universal feature of postwar industrial economies, though there are significant cross-national variations. This paper studies the impact of different types of welfare regimes, production systems and labour relations on early exit from work. After an analysis of the main trends, the paper discusses the costs and benefits of early retirement for the various actors — labour, capital and the state — at different levels. The paper outlines both the “pull” and “push” factors of early exit. It first compares the distinct welfare state regimes and private occupational pensions in their impact on early retirement. Then it looks at the labour-shedding strategies inherent to particular employment regimes, production systems and financial governance structures. Finally, the impact of particular industrial relations systems, and especially the role of unions is discussed. The paper finds intricate “institutional complementarities” between particular welfare states, production regimes and industrial relations systems, and these structure the incentives under which actors make decisions on work and retirement. The paper argues that the “collusion” between capital, labour and the state in pursuing early retirement is not merely following a labour-shedding strategy to ease mass unemployment, but also caused by the need for economic restructuration, the downsizing pressures from financial markets, the maintenance of peaceful labour relations, and the consequences of a seniority employment system.
Topic:
Economics
Political Geography:
United States, Japan, Europe, and East Asia

54. Modell Deutschland as an Interdenominational Compromise

Author:
Philip Manow
Publication Date:
05-1999
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Usually, Germany's social market economy is understood to embody a compromise between a liberal market order and a corporatist welfare state. While this reading of the German case is certainly not entirely wrong, this paper argues that only if we account for the close intellectual correspondence between lutheran Protestantism and economic liberalism on the one hand and between Catholicism and welfare corporatism on the other, can we fully comprehend the nature of the German post-war compromise. In particular, this perspective allows to better explain the anti-liberal undercurrents of Germany's soziale Marktwirtschaft. It was especially the role which Protestant Ordoliberals ascribed to the state in upholding economic order and market discipline which accounts for the major difference between 'classic' and 'German-style' economic liberalism. Yet, the postwar economic order did not represent a deliberately struck compromise between the two major Christian denominations. Rather, Germany's social market economy was the result of the failure of German Protestant Ordoliberals to prevent the reconstruction of the catholic Bismarckian welfare state after the authoritarian solution, which Ordoliberals had endorsed so strongly up until 1936 and from which they had hoped there-inauguration of Protestant hegemony, had so utterly failed. Since the ordoliberal doctrine up to the present day lacks a clear understanding of the role of the corporatist welfare state within the German political economy, its insights into the functioning logic of German capitalism have remained limit. The paper also claims that accounting for the denominational roots of the postwar compromise allows us to better understand the relationship between consociationalism and corporatism in 'Modell Deutschland'.
Topic:
Economics, Emerging Markets, and Government
Political Geography:
Europe and Germany

55. Modell Deutschland as an Interdenominational Compromise

Author:
Philip Manow
Publication Date:
05-1999
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Usually, Germany's social market economy is understood to embody a compromise between a liberal market order and a corporatist welfare state. While this reading of the German case is certainly not entirely wrong, this paper argues that only if we account for the close intellectual correspondence between lutheran Protestantism and economic liberalism on the one hand and between Catholicism and welfare corporatism on the other, can we fully comprehend the nature of the German post-war compromise. In particular, this perspective allows to better explain the anti-liberal undercurrents of Germany's soziale Marktwirtschaft. It was especially the role which Protestant Ordoliberals ascribed to the state in upholding economic order and market discipline which accounts for the major difference between 'classic' and 'German-style' economic liberalism. Yet, the postwar economic order did not represent a deliberately struck compromise between the two major Christian denominations. Rather, Germany's social market economy was the result of the failure of German Protestant Ordoliberals to prevent the reconstruction of the catholic Bismarckian welfare state after the authoritarian solution, which Ordoliberals had endorsed so strongly up until 1936 and from which they had hoped the re-inauguration of Protestant hegemony, had so utterly failed. Since the ordoliberal doctrine up to the present day lacks a clear understanding of the role of the corporatist welfare state within the German political economy, its insights into the functioning logic of German capitalism have remained limit. The paper also claims that accounting for the denominational roots of the postwar compromise allows us to better understand the relationship between consociationalism and corporatism in 'Modell Deutschland'.
Topic:
Economics, Government, Political Economy, and Religion
Political Geography:
Europe and Germany

56. De Gaulle and Europe: Historical Revision and Social Science Theory

Author:
Andrew Moravcsik
Publication Date:
05-1998
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
The thousands of books and articles on Charles de Gaulle's policy toward European integration, whether written by historians, political scientists, or commentators, universally accord primary explanatory importance to the General's distinctive geopolitical ideology. In explaining his motivations, only secondary significance, if any at all, is attached to commercial considerations. This paper seeks to reverse this historiographical consensus by the four major decisions toward European integration taken under de Gaulle's Presidency: the decisions to remain in the Common Market in 1958, to propose the Fouchet Plan in the early 1960s, to veto British accession to the EC, and to provoke the “empty chair” crisis in 1965-1966, resulting in “Luxembourg Compromise.” In each case, the overwhelming bulk of the primary evidence—speeches, memoirs, or government documents—suggests that de Gaulle's primary motivation was economic, not geopolitical or ideological. Like his predecessors and successors, de Gaulle sought to promote French industry and agriculture by establishing protected markets for their export products. This empirical finding has three broader implications: (1) For those interested in the European Union, it suggests that regional integration has been driven primarily by economic, not geopolitical considerations—even in the “least likely” case. (2) For those interested in the role of ideas in foreign policy, it suggests that strong interest groups in a democracy limit the impact of a leader's geopolitical ideology—even where the executive has very broad institutional autonomy. De Gaulle was a democratic statesman first and an ideological visionary second. (3) For those who employ qualitative case-study methods, it suggests that even a broad, representative sample of secondary sources does not create a firm basis for causal inference. For political scientists, as for historians, there is in many cases no reliable alternative to primary-source research.
Topic:
Foreign Policy, Economics, International Organization, Political Economy, and Politics
Political Geography:
Europe and France