Documents Starke, Peter 7 results

"Minimum wage legislation has spread across rich democracies in recent decades in response to rising inequality and in-work poverty. However, there are concerns that state regulation of wages could reduce incentives to join a union. We empirically test this crowding out hypothesis, using (1) an event-study macro-level analysis of trade union density in 19 advanced capitalist countries between 1960 and 2017 and (2) a multi-level analysis of 32 countries (1981−2020) where we use individual-level union membership as dependent variable. We find no evidence that statutory minimum wage adoption crowds out union density. We also test whether the most vulnerable groups of employees (young, low-skilled and low-income) have a lower propensity to join a union when a minimum wage is introduced but find no effect either."

"Large-scale exit from the labour market began in the 1970s in many OECD countries. The literature indicates that individual early retirement decisions are facilitated by generous and accessible ‘pathways' into retirement in the public pension system, unemployment insurance or disability benefits. It is unclear, however, why early exit became so much more prevalent in some countries than in others and why such differences remain, despite a recent shift back towards higher employment rates and ‘active ageing'. We test a logic of sectoral cost-shifting politics involving cross-class alliances in the tradable sector, against a more traditional class-based logic of welfare state policy-making. Quantitative analysis of employment outcomes in 21 countries shows that the political economy of early exit clearly rests on the sectoral politics of cost-shifting."

"This paper describes welfare state transformation in OECD countries since the 1970s against the background of the post-war settlement. Relying on quantitative macro-data and qualitative information from the literature, we show that welfare states have con-verged, especially regarding various spending measures, and also to a certain extent in some qualitative policy-making patterns. What has emerged can best be described as the ‘supply-side welfare state' model, and this overall orientation is reflected in many wel-fare state areas. We differ from earlier prognoses of a race to the bottom by generous welfare states and disagree with the view that a supply-side orientation equals ‘lean government' in terms of social expenditure. But convergence implies that the space to maneuver has shrunk for policy-makers. The consequences of the 2008 financial crisis for welfare states are difficult to predict; short-term counter-cyclical measures in reac-tion to the crisis highlight the importance of protective buffers in highly integrated economies. Still, some countries have experienced harsh austerity measures since then, and thus the 2008 financial crisis may mark the end of the convergence period described here."

"Welfare state retrenchment is widely seen as a highly unpopular endeavour and, therefore, as politically difficult to pursue. This assumption has underpinned most of the political science research on this issue, notably Paul Pierson's seminal contributions about the ‘new politics of the welfare state'. Yet, the question remains why and under what circumstances cutbacks take place in highly developed welfare states despite these formidable political obstacles. This article reviews the literature on the politics of retrenchment, namely on the impact of socio-economic problem pressure, political parties, political institutions, welfare state structures and ideas. Most authors agree that socio-economic problems – particularly domestic problems – contribute to an atmosphere of ‘permanent austerity' which inspires cutbacks. Moreover, according to most scholars, the extent of retrenchment possible depends on the specific institutional configuration of a political system and the path dependence of existing welfare state structures. The debate on the relevance of political parties and ideas, by contrast, is still far from settled. Further unresolved issues include the nature of the dependent variable in retrenchment studies. Also, the exact motives for cutbacks are theoretically still little understood, as are the political mechanisms through which they are realized. I argue that, because of the nature of these persisting issues, the pluralistic dialogue between different methods and approaches – as well as their combination – remains the most promising way forward in the study of welfare state politics."

"This paper maps and explains the reactions of four welfare states – Australia, Belgium, the Netherlands and Sweden – to three global crisis situations – the oil shocks of the 1970s, the worldwide recession of the early 1990s, and the financial crisis from 2008 onwards. Two main conclusions follow from the analysis: First, using a comprehensive typology of social policy reactions to crises, we show that crisis reactions were surprisingly diverse. There is no uniform policy response, as policies range from retrenchment through non-response to welfare state expansion. Second, explaining the variation regarding expansion vs. retrenchment we focus on the partisan composition of government, and the size of the existing welfare state, which may operate as an important automatic stabilizer during recessions. While none of these factors alone is sufficient, their interaction is able to explain most of the specific social policy responses adopted in the four countries studied."

"Transformations of the Welfare State gives a new twist to the longstanding debate on the impact of economic globalization on the welfare state. The authors focus on several small, advanced OECD economies in order to assess whether (and how) the welfare state will be able to compete under conditions of an increasingly integrated world economy. Small states can be seen as an 'early warning system' for general trends, because of their dependence on world markets and vulnerability to competitive pressures. The book's theoretical part innovatively integrates the literature on the political economy of small states with more recent research on the impact of globalization on social policy to generate a set of ideal-typical policy scenarios. In the main body of the book, the authors systematically test these scenarios against the experience of four countries: Austria, Denmark, New Zealand, and Switzerland. The comparative, in-depth analysis of reform trajectories since the 1970s in four key policy areas -- pensions, labour market policy, health care, and family policy -- provides, according to the authors, substantial evidence of a new convergence in welfare state patterns. They go on to argue that this amounts to a fundamental transformation of the welfare state from the old Keynesian welfare state positioned 'against the market' to a new set of supply-side policies 'with' and 'for' the market. Yet one of the big lessons to be learned from this timely study is that the transformation does not match the doomsday scenario predicted by neo-classical economists in the 1990s. There is no evidence of a 'race to the bottom' of social expenditure and standards of social protection, nor of a convergence towards a 'liberal' social policy model. Looking to the possible future of the welfare state in an era newly marked by profound uncertainty, the authors sound an optimistic note for states of any size. "

"Existing studies have found only limited empirical evidence of welfare state convergence. Moreover, although there are good theoretical reasons both for and against welfare state convergence, there are virtually no studies that have explicitly tested the assumed effects. We argue that the concept of conditional convergence helps to both better describe and explain the phenomenon. By applying error correction models, we examine conditional convergence of various types of social expenditure in 21 OECD countries between 1980 and 2005. Our empirical findings go beyond the existing literature in two respects. First, we show that there is very strong evidence of convergence across all categories of social expenditure when conditional factors are taken into account. Second, we demonstrate that the speed of convergence is highly driven by globalization and European Union membership and shaped by existing welfare state structures. "