Coordinated welfare capitalism has been subject to comprehensive change since the 1990s, with workfare measures and the deregulation of employment protection at the heart of labor market reforms. Developments in Sweden, Germany, and South Korea challenge not only the assumption of relative stability that is commonly associated with the study of coordinated market economies, but also the assertion that this stability is associated with the persistence of established political coalitions. The authors contend that a collapse of longstanding welfare state coalitions is the key political driver of labor market reform, with the withdrawal of employers from previous welfare settlements at the center of this development.
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