Thomas Paster - The Role of Business in the Development of the Welfare State and Labor Markets in Germany: Containing Social Reforms

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The Role of Business in the Development of the Welfare State and Labor Markets in Germany

This book assesses the role of employers in the development of welfare state and labor market institutions. Building on an in-depth analysis of Germany, a market economy often thought to provide economic benefits to firms, this book explores one of the most contested issues in the comparative and historical literature on the welfare state.

In a departure from existing employer-centered explanations, the author draws on new historical sources to contend that the variation in acceptance of social reform depends more on changes in the types of political challenges faced by employers than on changes in the type of institutions considered economically beneficial. Covering major reforms spanning more than a century of institutional development in unemployment insurance, accident insurance, pensions, collective bargaining, and codetermination, this book argues that employers support social policy as a means to contain political outcomes that would have been more undesirable, including labor unrest and more radical reform plans. Using new and controversial findings on the role of employers in welfare state development, this book considers the conditions for a peaceful coexistence of a generous welfare state and the business world.

The Role of Business in the Development of the Welfare State and Labor Markets in Germany will be of interest to students and scholars of social policy, political economy and European politics.

Thomas Paster is a research fellow at the Max Planck Institute for the Study of Societies (MPIfG) in Cologne, Germany.

Routledge/EUI studies in the political economy of welfare

Series editors: Martin Rhodes and Maurizio Ferrera
The European University Institute, Florence, Italy

This series presents leading edge research on the recasting of European welfare states. The series is interdisciplinary, featuring contributions from experts in economics, political science and social policy. The books provide a comparative analysis of topical issues, including;

reforms of the major social programmes pensions, health, social security

the changing political cleavages in welfare politics

policy convergence and social policy innovation

the impact of globalisation

1 Immigration and Welfare
Challenging the borders of the welfare state
Edited by Michael Bommes and Andrew Geddes

2 Renegotiating the Welfare State
Flexible adjustment through corporatist concertation
Edited by Frans van Waarden and Gerhard Lehmbruch

3 Comparing Welfare Capitalism
Social policy and political economy in Europe, Japan and the USA
Edited by Bernhard Ebbinghaus and Philip Manow

4 Controlling a New Migration World
Edited by Virginie Giraudon and Christian Joppke

5 The Moral Economy of Welfare States
Britain and Germany compared
Steffen Mau

6 Welfare State Reform in Southern Europe
Fighting poverty and social exclusion in Italy, Spain, Portugal and Greece
Edited by Maurizio Ferrera

7 Normative Foundations of the Welfare State
The Nordic experience
Edited by Nanna Kildal and Stein Kuhnle

8 Regulating New Forms of Employment
Local experiments and social innovation in Europe
Edited by Ida Regalia

9 The Politics of Post-Industrial Welfare States
Adapting post-war social policies to new social risks
Edited by Klaus Armingeon and Giuliano Bonoli

10 Pension Reform in Europe
Politics, policies and outcomes
Edited by Camila Arza and Martin Kohli

11 Pension Politics
Consensus and social conflict in ageing societies
Patrik Marier

12 Changing European Employment and Welfare Regimes
The influence of the open method of coordination on national reforms
Edited by Martin Heidenreich and Jonathan Zeitlin

13 The Risk of Social Policy?
The electoral consequences of welfare state retrenchment and social policy performance in OECD countries
Nathalie Giger

14 The Role of Business in the Development of the Welfare State and Labor Markets in Germany
Containing social reforms
Thomas Paster

The Role of Business in the Development of the Welfare State and Labor Markets in Germany

Containing social reforms

Thomas Paster

First published 2012
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Simultaneously published in the USA and Canada
by Routledge
711 Third Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

2012 Thomas Paster

The right of Thomas Paster to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data
Paster, Thomas, 1975
The role of business in the development of the welfare state and labor markets in Germany: containing social reforms / Thomas Paster.
p. cm. (Routledge/EUI studies in the political economy of welfare; 14)
Includes bibliographical references and index.
1. IndustriesSocial aspectsGermany. 2. Industrial relationsGermany. 3. Labor marketGermany. 4. Welfare stateGermany. 5. GermanySocial policy. I. Title.
HD60.5.G3P38 2012
330.943dc232011027442

ISBN: 978-0-415-61136-7 (hbk)
ISBN: 978-0-203-14230-1 (ebk)

Contents

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Figures and Tables

Figures

3.1

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5.1

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10.2

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