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Distribution and Redistribution in Postindustrial Democracies

  • David Bradley (a1), Evelyne Huber (a2), Stephanie Moller (a2), François Nielsen (a2) and John D. Stephens (a2)...
Abstract

This article analyzes the processes of distribution and redistribution in postindustrial democracies. The authors combine a pooled time-series data base on welfare state effort and its determinants assembled by Huber, Ragin, and Stephens (1997) with data on income distribution assembled in the Luxembourg Income Survey (IJS) archive. In the case of the LIS data, the authors recalculate the microdata in order to remove the distorting influence of pensioners on pretax, pretransfer income distribution. They examine the determinants of two dependent variables: pretax, pretransfer income inequality and the proportional reduction in inequality from pre- to post—tax and transfer inequality. They test hypotheses derived from power resources theory against alternatives derived from the literature on the development of the welfare state and the determinants of income inequality, The results offer strong support for power resources theory, particularly in the case of reduction in inequality. Union density, unemployment, and percentage of female-headed households were the main determinants of pre—tax and transfer inequality (R2 = .64), while leftist government, directly and indirectly through its influence on the size of the welfare state, was found to be by far the strongest determinant of distribution (R2 = .81).

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1 Lasswell, Harold, Politics: Who Gets What, When, How (New York and London: Hittlesey House and McGraw Hill Book Company, 1936).

2 Page, Benjamin I. and Simmons, James R., What Government Can Ho: Dealing with Poverty and Inequality (Chicago: University of Chicago Press, 2000).

3 See, for instance, Esping-Andersen, Gøsta and Korpi, Walter, “Social Policy as Class Politics in PostWar Capitalism: Scandinavia, Austria, and Germany,” in Goldthorpe, John, ed., Order and Conflict in Contemporary Capitalism: Studies in the PoliticalEconomy of Western European Nations (Oxford: don Press, 1984); Korpi, Walter, The Democratic Class Struggle (London: Routledge and Kegan Paul, 1983); and Stephens, John D., The Transitionfrom Capitalism to Socialism (London: Macmillan, 1979).

4 See, for instance, Pampel, Fred and Williamson, John, Age, Class, Politics and the Welfare State (New York: Cambridge University Press, 1989); and Wilensky, Harold, The Welfare State and Equality (Berkeley: University of California Press, 1975).

5 See, for instance, Heclo, Hugh, Modern SocialPolitics in Britain and Sweden (New Haven: Yale Uni versity Press, 1974); and Weir, Margaret and Skocpol, Theda, “State Structures and the Possibilities for Keynesian Responses to the Great Depression in Sweden, Britain, and the United States,” in Evans, Peter, Rueschemeyer, Dietrich, and Skocpol, Theda, eds., Bringing the State Back In (New York: Cambridge University Press, 1985).

6 Orloff, Ann Shola, “Gender and the Social Rights of Citizenship: The Comparative Analysis of Gender Relations and Welfare States,” American Sociological Review 58, no. 3 (1993).

7 See Hicks, Alexander, Social Democracy and Welfare Capitalism: A Century ofIncome Security Policies (Ithaca, N.Y.: Cornell University Press, 1999); Huber, Evelyne and Stephens, John D., Development and Crisis ofthe Welfare State: Parties and Policies in Global Markets (Chicago: University of Chicago Press, 2001); and Swank, Duane, Global Capital, PoliticalInstitutions, and Policy Change in Developed Welfare States (Cambridge: Cambridge University Press, 2002).

8 O'Connor, Julia S., Orloff, Ann Shola, and Shaver, Sheila, States, Markets, Families: Gender, Liberalism and Social Policy in Australia, Canada, Great Britain and the United States (Cambridge: Cambridge University Press, 1999); Sainsbury, Diane, Gender, Equality, and Welfare States (Cambridge: Cambridge University Press, 1996); and Stetson, Dorothy McBride and Mazur, Amy G., eds., Comparative State Feminism (Thousand Oaks, Calif.: Sage, 1995).

9 Huber, Evelyne and Stephens, John D., “Partisan Governance, Women's Employment and the Social Democratic Service State,” American Sociological Review 65, no. 3 (2000); and Huber and Stephens (fn. 7).

10 Iversen, Torben and Cusack, Thomas R., “The Causes of Welfare State Expansion: Deindustrial-ization or Globalization?” World Politics 52 (April 2000).

11 Swenson, Peter, Capitalists against Markets: The Making ofLabor Markets and Welfare States in the United States and Sweden (New York: Oxford University Press, 2002).

12 Iversen, Torben and Soskice, David, “An Asset Theory of Social Policy Preference,” American Political Science Review 95, no. 4 (2001).

13 Moene, Karl Ove and Wallerstein, Michael, “Inequality, Social Insurance, and Redistribution,” American Political Science Review 95, no. 4 (2001).

14 See Korpi (fn. 3), esp 184–98; idem, The Working Class in Welfare Capitalism (London: Routledge and Kegan Paul, 1978); Stephens, “The Consequences of Social Structural Change for the Development of Socialism in Sweden” (Ph.D. diss., Yale University, 1976); and idem (fn. 3) esp. 105–8, 163–76. In addition to Korpi and Stephens, those most often associated with the power resources explanation of welfare state development are Esping-Andersen, Gasta, Politics against Markets (Princeton: Princeton University Press, 1985); and Esping-Andersen and Korpi (fn. 3). In addition to equality, Es-ping-Andersen (1985) posits reinforcing class solidarity through universalistic policies and decom-modification as goals of social democratic social policy (pp. 147—48). Though decommodification takes pride of place in his 1990 book, The Three Worlds of Welfare Capitalism (Princeton: Princeton University Press, 1990), the other two goals remain. Other earlier neo-Marxist-influenced contributors to power resources theory include Hicks, Alexander, Friedland, Roger, and Johnson, Edwin, “Class Power and State Policy,” American Sociological Review 43, no. 3 (1978); and Roger Friedland, “Class Power and the City” (Ph.D. diss., University of Wisconsin, 1977). Forerunners include Martin, Andrew, The Politics of Economic Policy in the United States, Sage Professional Paper, 01–040 (Beverly Hills: Sage Publications, 1973); and Lenski, Gerhard E., Power and Privilege: A Theory ofSocial Stratification (New York: McGraw-Hill, 1966), esp. 316–25. For a review of the early contribution to power resources theory or the “social democratic model,” as the author calls it, see Shalev, Michael, “The Social Democratic Model and Beyond: Two Generations of Comparative Research on the Welfare State,” Comparative Social Research 6 (1983).

15 Esping-Anderson (fn. 14,1990).

16 Sawyer, Malcolm, Income Distribution in OECD Countries, Occasional Studies Paper (Paris: OECD, 1976).

17 See, for instance, Mitchell, Deborah, Income Transfers in Ten Welfare States (Brookfield, Vt.: Ave-bury, 1991).

18 While we do discuss variations in posttax, posttransfer income distribution, as that is the policy outcome of greatest interest, we see it as product of these two distinct stages and thus do not subject it to multivariate analysis. Indeed, pre-tax and transfer inequality and government distribution account for 99.51 percent of the variation in post-tax and transfer inequality.

19 Korpi (fnn. 3,14); and Stephens (fnn. 3,14).

20 Giddens, Anthony, The Class Structure ofAdvanced Societies (London: Hutchinson, and New York: Harper and Row, 1973).

21 We say subordinate rather than working class because both authors as well as Esping-Andersen (fh. 14,1985) see the development of the welfare state and redistribution as the product of shifting class coalitions. Nonmanual employees are viewed as either a part of the working class or another subordinate class, which is consistent with these authors' operationalization of union strength as including all union members not just manual workers.

22 Sawyer (fn. 16).

23 Korpi (fn. 3); Stephens (fn. 3).

24 Hicks, Alexander and Swank, Duane, “Redistribution in Rich Capitalist Democracies,” Policy Studies Journal 13, no. 2 (1984); and Corina, J.Arnhem, M. Van and Schotsman, Guert J., “Do Parties Affect the Distribution of Incomes? The Case of Advanced Capitalist Democracies,” in Castles, Francis G., ed., The Impact ofParties (Beverly Hills, Calif: Sage, 1982).

25 Before the publication of Sawyer (fn.16), several scholars used the Paukert income distribution data; Paukert, E., “Income Distribution: A Survey of the Evidence,” International Labour Review 108 (1973). See, for instance, Hewitt, Christopher, “The Effect of Political Democracy and Social Democracy on Equality in Industrial Societies: A Cross-National Comparison,” in American Sociological Review 42, no. 3 (1977); David Cameron, “Inequality and the State” (Paper presented at the annual meeting of the American Political Science Association, Washington, D.C., September 1976); and Stephens (fn. 14). After the Sawyer study revealed the incomparability of much of these data, Stephens (fn. 3) used the Sawyer data but dropped multiple regression for simple correlation because of the small number of cases, while Cameron dropped the income distribution section of the earlier APSA paper in his 1978 article; Cameron, , “The Expansion of the Public Economy,” American Political Science Review 72, no. 4 (1978).

26 Hicks and Swank (fn. 24), 266. More recently, Vincent A. Mahler, David K.Jesuit, and Douglas D. Roscoe analyzed data from waves 2 and 3 of LIS, breaking the distributive process into two stages and actually calculating reduction in inequality, as do Hicks and Swank (fn. 24) and the present study; see Mahler, , Jesuit, , and Roscoe, , “Exploring the Impact ofTrade and Investment on Income Inequality,” Comparative Political Studies 32 (May 1999). However, the latter study is not comparable to these two studies or to the other three cited in the text, because it focuses on the earnings of working-age employed individuals rather than on the income of households. It also does not include any of the political or union variables included in these earlier analyses. Moreover, like the four earlier studies, Mahler, Jesuit, and Roscoe limit themselves to bivariate analysis.

27 Esping-Andersen, Gøsta, Social Foundations ofPostindustrial Economies (Oxford: Oxford University Press, 1999); Huber and Stephens (fn. 7); and Scharpf, Fritz W., “Economic Changes, Vulnerabilities, and Institutional Capabilities,” in Scharpf, Fritz W. and Schmidt, Vivien A., eds., Welfare and Work in the Open Economy, vol. 1, From Vulnerability to Competitiveness (Oxford: Oxford University Press, 2000).

28 Esping-Andersen (fn. 14, 1990); Huber, Evelyne, Ragin, Charles, and Stephens, John D., “Social Democracy, Christian Democracy, Constitutional Structure and the Welfare State,” American Journal of Sociology 99, no. 3 (1993); Kersbergen, Kees Van, Social Capitalism: A Study of Christian Democracy and the Welfare State (London and New York: Routledge, 1995); and Wilensky, Harold, “Leftism, Catholicism, and Democratic Corporatism,” in Flora, Peter and Heidenheimer, Arnold, eds., The Development ofthe Welfare State in Europe andAmerica (New Brunswick, N.J.: Transaction Press, 1981).

29 Esping-Andersen (fn. 14); Stephens (fn. 3); and Huber and Stephens (fn. 7).

30 Immergut, Ellen, The Political Construction ofInterests: NationalHealth Insurance Politics in Switzerland, France and Sweden, 1930–1970 (New York: Cambridge University Press, 1992); Huber, Ragin, and Stephens (fn. 28); and Huber and Stephens (fnn. 9, 7).

31 See, for instance, Iversen, Torben, “Power, Flexibility and the Breakdown of Centralized Wage Bargaining: The Cases of Denmark and Sweden in Comparative Perspective,” Comparative Politics 28 (July 1996); Wallerstein, Michael, “Wage Setting Institutions and Pay Inequality in Advanced Industrial Societies,” American Journal of Political Science 43, no. 3 (1999); and Pontusson, Jonas, Rueda, David, and Way, Chris, “Comparative Political Economy of Wage Distribution: The Role of Partisanship and Labor Market Institutions,” British Journal of Political Science 32, no. 2 (2002).

32 Wallerstein (fn. 31); Ponstusson, Rueda, and Way (fn. 31).

33 Cameron, David, “Social Democracy, Corporatism, Labour Quiescence, and Representation of Economic Interest in Advanced Capitalist Society,” in Goldthorpe, John, ed., Order and Conflict in Contemporary Capitalism: Studies in the PoliticalEconomy of Western European Nations (Oxford: Claren-don Press, 1984).

34 Cameron (fn. 33); Hicks (fn. 7); and Hicks, Alexander and Misra, Joya, “Political Resources and the Growth of Welfare in Affluent Capitalist Democracies, 1960–82,” American Journal of Sociology 99, no. 3 (1993).

35 Hicks and Swank (fn. 24); Lange, Peter and Garrett, Geoffrey, “The Politics of Growth: Strategic Interaction and Economic Performance in the Advanced Industrial Democracies, 1974–1980,” Journal of Politics 47, no. 3 (1985). Peter Katzenstein explicitly rejects the view that corporatism is the product of union strength and left-wing government; Katzenstein, , Small States in World Markets (Ithaca, N.Y.: Cornell University Press, 1985).

36 Romer, Thomas, “Individual Welfare, Majority Voting, and the Properties of a Linear Income Tax,” Journal of Public Economics 14 (May 1975).

37 Meltzer, Allan H. and Richard, Scott F., “A Rational Theory of the Size of Government,” Journal of Political Economy 89 (October 1981).

38 Moene and Wallerstein (fn. 13) hypothesize the opposite relationship for certain insurance types of social spending, but because such spending is income related, it is less likely to be redistributive. Since our dependent variable is redistribution, we hypothesize a positive relationship between pre-tax and transfer inequality and redistribution.

39 Note that our dependent variable is household income and includes the households of the unemployed. Thus, the inverse relationship between wage dispersion and unemployment noted by Adrian Wood and Gosta Esping-Anderson would not be expected in our data; see Wood, , North-South Trade, Employment, and Inequality (Oxford: Oxford University Press, 1994); and Esping-Anderson, , “Postindustrial Cleavage Structures: A Comparison of Evolving Patterns of Social Stratification in Germany, Sweden, and the United States,” in Grusky, David B., ed., Social Stratification in Sociological Perspective, 2d ed. (Boulder, Colo.: Westview Press, 2001). They explain this inverse relationship with the argument that in countries offering high unemployment benefits, unemployed workers will be more likely to prefer unemployment (with attractive benefits) rather than accept low-paying jobs, while in countries with few benefits workers have no choice but to accept these low-paying jobs.

40 Alderson, Arthur S. and Nielsen, François, “Globalization and the Great U-Turn: Income Inequality Trends in Sixteen OECD Countries,” AmericanJournal ofSociology 107 (March 2002).

41 Wood (fn. 39).

43 Scharpf (fn. 27).

43 Alderson and Nielsen (fn. 40).

44 Borjas, George J., “The Economics of Immigration,” Journal of Economic Literature 32, no. 2 (1994).

45 Borjas, George J., Freeman, Richard B., and Katz, Lawrence F., “On the Labor Market Impacts of Immigration and Trade,” in Borjas, George J. and Freeman, Richard B., eds., Immigration and the Work Force: Economic Consequencesfor the United States and Source Areas (Chicago: University of Chicago Press, 1992.); Alderson and Nielsen (fn. 40).

46 Nielsen, François and Alderson, Arthur S., “Income Inequality, Development, and Dualism: Results from an Unbalanced Cross-National Panel,” American Sociological Review 60, no. 5 (1995).

47 See also Alderson and Nielsen (fn. 40).

48 We should note that globalization is causally related to the development of the world economy but simply associated with (and not causally related to) rising per capita GDP in individual countries. Thus, for example, in the mid-1990s, economic actors and policymakers in the U.S. and the U.K. faced the same pressures from open financial markets despite quite different levels of per capita GDP. By contrast, since postindustrialization is primarily a property of the domestic economy, there is a stronger causal link between domestic economic development and postindustrialism than between domestic economic development and globalization.

49 Alderson and Nielson (fn. 40).

50 Katz, Lawrence F. and Murphy, Kevin M., “Changes in Relative Wages, 1963–1987: Supply and Demand Factors,” Quarterly Journal of Economics 107, no. 1 (1992).

51 Peter Gottschalk and Mary Joyce, “Changes in Earnings Inequality in OECD Countries: The Role of Market and Institutional Factors” (Manuscript, Boston College, 1996).

52 Gottschalk, Peter and Smeeding, Timothy M., “Cross-National Comparisons of Earnings and Income Inequality,” Journal of Economic Literature 35, no. 2 (1997).

53 CME is the term Soskice uses to characterize the types of economies that earlier work had referred to as “organized market economies.” In CMEs “there is considerable nonmarket coordination directly and indirectly between companies, with the state playing a framework-setting role; and . . . labor remains ‘incorporated.’” Soskice, David, “Divergent Production Regimes: Coordinated and Uncoordinated Market Economies in the 1980s and 1990s,” in Kitschelt, Herbert, Lange, Peter, Marks, Gary, and Stephens, John D., eds., Continuity and Change in Contemporary Capitalism (New York: Cambridge University Press, 1999).

54 Estevez-Abe, Margarita, Iversen, Torben, and Soskice, David, “Social Protection and the Formation of Skills: A Reinterpretation of the Welfare State,” in Hall, Peter and Soskice, David, eds., Varieties of Capitalism (New York: Oxford University Press, 2001).

55 Ibid.

56 Iversen and Soskice (fn. 12).

57 Thurow, Lester C., “A Surge in Inequality,” in Scientific American 256, no. 5 (1987); Cancian, Maria, Danziger, Sheldon and Gottschalk, Peter, “Working Wives and Family Income Inequality among Married Couples,” in Danziger, Sheldon and Gottschalk, Peter, eds., Uneven Tides: Rising Inequality in America (New York: Russell Sage Foundation, 1993); and Nielsen, François and Alderson, Arthur S., “The Kuznets Curve and the Great U-Turn: Income Inequality in U.S. Counties, 1970 to 1990,” American Sociological Review 62, no. 1 (1997).

58 Levy, Frank and Michel, Richard C., The Economic Future ofAmerican Families: Income and Wealth Trends (Washington, D.C.: Urban Institute Press, 1991); Nielsen and Alderson (fn. 46).

59 Alderson and Nielsen (fn. 40).

60 Gottschalk and Smeeding (fn. 52), 667. See also Lynn A. Karoly, “Anatomy of the United States Income Distribution: Two Decades of Change” (Manuscript, RAND Corporation, Santa Monica, Calif, 1995); and Danziger, Sheldon and Gottschalk, Peter, American Unequal (Cambridge: Harvard University Press, 1995).

61 For a general introduction to the LIS database and a complete list of countries, years, and variables available in this rich data source, see http://ww.lis.ceps.lu.

62 Complete comparability is, of course, not possible. Since LIS collects data in “waves” (corresponding roughly to the same period of time), LIS data are more comparable within waves rather than over time (due to a change in country surveys utilized by LIS, for example). However, given the careful harmonization of surveys by the LIS project, the use of LIS data to study income trends is widely accepted. See OECD, “Income Distribution in OECD Countries: Evidence from the Luxembourg Income Study,” Social Policy Studies 18 (1995).

63 OECD (fn. 62).

64 Tiina Mäkinen, “Contradictory Findings? The Connection between Structural Factors, Income Transfers and Poverty in OECD Countries,” Series B (Department of Social Policy, University of Turku, Finland, 1998), 19.

65 To take one example, Mitchell (fn.17) calculates that taxes and transfers reduce inequality among the population of surveyed Swedes in 1981 by 53 percent, whereas our calculations for the population aged 25–59 show a 34 percent reduction in equality.

66 For a discussion of equivalence scales, see OECD (fn. 62).

67 Parkin, Frank, Class Inequality and Political Order (New York: Praeger, 1971); Westergaard, John and Resler, Henrietta, Class in a Capitalist Society (New York: Basic Books, 1975).

68 Bernhard Ebbinghaus and Jelle Visser, “European Trade Unions in Figures” (Manuscript, Department of Sociology, University of Amsterdam, 1992). Data for 1993–97 were supplied to us by Jelle Visser.

69 The Alderson and Nielsen (fn. 40) results suggest that we should also include the percentage of the population in agriculture as an independent variable. We did test this hypothesis but it did not have the hypothesized effect in our data, which do not reach as far back in time as their data. The agricultural section is very small in all of our countries by this point in time (mean = 5 percent).

70 Kenworthy, Lane, “Wage-Setting Measures: A Survey and Assessment,” in World Politics 54 (October 2001).

71 We cross-checked the Kenworthy measure (fn. 70) by substituting measures of bargaining centralization developed by Wallerstein (fn. 31); and Iversen, Torben, “Wage Bargaining, Central Bank Independence and the Real Effects of Money,” International Organization 52, no. 3 (1998). All of these measures are highly correlated, and the others performed no better than the Kenworthy measure.

72 For a discussion of top and bottom coding, see Gottschalk and Smeeding (fn. 52).

73 Quinn, Dennis and Inclan, Carla, “The Origins of Financial Openness: A Twenty-one-Country Study of Its Determinants, 1950–1988,” American Journal of Political Science 41, no. 3 (1997).

74 Following Alderson and Nielsen (fn. 40); OECD, Foreign Trade by Commodities (Paris: OECD, various years).

75 Following Alderson and Nielsen (fn. 40); World Bank, World Tables (Baltimore: Johns Hopkins University Press, various years).

76 Estevez-Abe, Iversen, and Soskice (fn. 54).

77 OECD/HRDC, Literacy in the Information Age: Final Report ofthe InternationalAdult Literacy Survey (Paris: Organization for Economic Cooperation and Development, Human Resources Development Canada, 2000).

78 These data were made available to us by Torben Iversen.

79 In married-couple households with females listed as the head of the household, LIS recoded the data to have married-couple households always headed by a male.

80 The grouping in this table is based on the character of the welfare state regime, not on political incumbency. The grouping here has no impact on the regressions, where we measure political incumbency as explained in the text.

81 See, for instance, Greene, William H., Econometric Analysis, 2d ed. (Englewood Cliffs, N.J.: Prentice Hall, 1993).

82 Beck, Nathaniel and Katz, Jonathan N., “What to Do (and Not to Do) with Time-Series Cross-Section Data,” American Political Science Review 89, no. 3 (1995).

83 Stimson, James A., “Regression in Time and Space: A Statistical Essay,” in American Journal of Political Science 29, no. 4 (1985).

84 For the development and description of the technique, see Huber, Peter J., “The Behavior of Maximum Likelihood Estimation under Nonstandard Conditions,” in LeCam, L. M. and Neyman, J., eds., Proceedings ofthe Fifth Berkeley Symposium on Mathematical Statistics and Probability 1 (Berkeley: University of California Press, 1967); White, Halbert, “A Heteroskedastic-Consistent Covariance Matrix Estimator and a Direct Test of Heteroskedasticity,” Econometrica 48, no. 4 (1980); Long, J. Scott and Ervin, Laurie H., “Using Heteroscedasticity Consistent Standard Errors in the Linear Regression Model,” American Statistician 54 (2000).

85 Rogers, William H., “sgl7: Regression Standard Errors in Clustered Samples,” Stata TechnicalBul-letin 13, reprinted in Stata Technical Bulletin Reprints 3 (1993). See also William Sribney, “Comparison of Standard Errors for Robust, Cluster, and Standard Estimators” (1998), at Stata FAQ_Statistics, Stata Corporation at www.stata.com/support/faqs/stat/cluster.html); StataCorp, Stata Statistical Software: Release 6.0 (College Station, Tex.: Stata Corporation, 1999), User's Guide 256–60.

86 Huber, Ragin, and Stephens (fn. 28).

87 Wallerstein (fn. 31).

88 Huber and Stephens (fn. 7).

89 Even a measure of the progressivity of taxes and transfers would not capture the entire redistrib-utive effect of social democratic governments because of limitations in our dependent variable. Our dependent variable measures only income and not the value of free or subsidized public services. Social democratic governments have expanded a variety of public services, from public health care, child care, and elderly care to training and retraining, access to which is either universal and free or to be paid for according to income. With the partial exception of health care, Christian democratic governments have preferred private delivery of such services—to the extent that the state became involved in supporting them at all—and payments according to insurance principles, which has a less redistributive effect.

90 Huber and Stephens (fn. 7).

91 The total effects of Christian democracy and social democracy are very similar to the results one gets if one drops Taxes and Transfers from equation 3 in Table 4. The standardized coefficients for social democracy and Christian democracy are .74 and —.18, respectively. The latter coefficient is not significant.

92 Van Kersbergen (fn.28).

93 See also Alderson and Nielsen (fn. 40).

94 Huber and Stephens (fn. 7), chap. 5.

95 Huber and Stephens (fn. 7); and Swank (fn. 7).

96 Alderson and Nielsen (fn. 40); and Gustafsson, Bjom and Johannson, Mats, “In Search of Smoking Guns: What Makes Income Inequality Vary over Time in Different Countries?” American Sociological Review 64, no. 4 (1999).

97 Wallerstein (fn. 31); and Pontusson, Rueda, and Way (fn. 31).

98 Aaberge, Rolf, Börklund, Anders, Jäntti, Markus, Pedersen, Peder J., Smith, Nina, and Wennemo, Tom, “Unemployment and Income Distribution: How did the Nordic Countries Fare during Their Crises,” Scandinavian Journal of Economics 102, no. 1 (2000).

99 David Bradley, “The Political Economy of Employment Performance: Testing the Deregulation Thesis” (Ph.D. Diss., University of North Carolina-Chapel Hill, 2001).

100 Korpi (fn. 3); Stephens (fn. 3).

101 Lenski(fn. 14).

102 Huber and Stephens (fn. 7).

* The authors would like to thank Ben Page and Michael Wallerstein, as well as participants in workshops on the welfare state and on inequality at Northwestern and Cornell Universities, for helpful comments on earlier drafts.

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