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Achen, Chris, 241 Austria (postwar)
Adjusted Goodness of Fit Index, 92 coordinated industrialization in, 43
advanced economies unemployment rates in, 64
differences in, 67 automatic consumption, 197, 200
unemployment rates™ in¬‚uence on, GDP de¬‚ator as part of, 197
68“9 gov de¬‚ator as part of, 197
af¬rmative action, 46 government, 204, 207
agriculture employment automatic spending variables, 203
in Europe, 69 dependent population as part of, 203
in US, 69 working age population as part of,
asset model, 85. See also electoral 203
politics automatic transfers
gender in, role of, 87“90 deindustrialization and, 198
general skill workers in, 86
results of, 86 Baldwin, Peter, 8
speci¬c skill workers in, 86 banking institutions
unemployment as part of, 87 in postwar Europe, control of, 40
asset speci¬city bargaining systems (wages), 19, 37,
institutionalized parties and, 123
136 distributive con¬‚icts and, 36
relational, 10 in Germany, 252
in welfare state, 10 government support for, 39, 43
asset theory labor unions and, 43
of preferences, 77 politician™s role in, 43
of social protection, 15“16 in postwar Europe, 36
of welfare state, 11 in Sweden, 252
associations (economic) in US, 252
employer, 36 for wages (Europe), 18, 20, 37, 63,
Australia 68
coalition governments in, 156 “Baumol effect,” 197, 223
labor market deregulation in, 246 Beck, Nathaniel, 243


within institutionalized parties,
coordinated industrialization in, 43
open list systems in, 174
school-based training systems in, 56
run-off majority systems in, 176
Christian democratic center party. See
earnings-related, 138
means-tested, 138, 140
Christian democratic center party
redistribution, structure of, 137
(Italy). See DC
transferability of, 186
Christian democratic parties, 17, 247
unemployment, 57
female labor force participation and,
Big Mac Index, 226, 227
248, 276
Blair, Tony, 253
retirement and, 248
Bretton Woods System, 45, 220
closed party list systems, 174
in postwar Europe, 62
coalition games, 171
coalition breakups within, 172
labor market reforms
d5/d1 ratios for, 245
Rubinstein bargaining solution, and,
dispersed wage structure in, 245
education levels in, 41
subgame perfect equilibrium in, 173
in¬‚ation factors in, 64
coalition governments
real exchange rates in, 224
in Australia, 156
in Denmark
human, 77
in Ireland, 156
physical, 77
CoG (center of gravity) index
absolute measure of, 162
VoC, 10
government, 196
Casa Integrazione, 52
partisanship and, 155
Catholic church
collective bargaining institutions
social/education services by, 247
reorganization of, 68
center left governments, 141
collective goods production, 130“1, 132
dismissal rules, 49
classi¬cations within, 142“3
female labor force participation and,
collective-action problems, 35
common shocks, 207
means-tested transfers in, 142
spending and, 205
PR political systems and, 161
comparative institutional advantage
redistribution and, 154
(concept), 15
center of gravity index. See CoG
con¬rmatory factor analysis. See CFA
center right governments, 141
constitutional veto points, 150, 154
election wins for, 142
consumer services, 231. See also service
majoritarian political systems and,
137, 141, 155
employment in, 235
means-tested transfers in, 142
“coordinated market economies,” 25
in The Netherlands
corporatism, 176
centralized parties
in institutionalized parties, 146
closed party list system in, 174
in postwar Europe, 63
¬‚exible list systems in, 175


Denmark, 267“8
correlation matrix, 179
employment /unemployment rates
“country dummies,” 194, 195, 225,
in, 260
taxation reforms in, 267
CRT (cathode ray tube), 3
volume of work gains in, 267
Cusack, Thomas, 16, 60, 149
d5/d1 ratio(s), 245“6
for Canada, 245
regression analysis of, 244
gender inequality and, 88, 89
wage data and, 245
dispersed wages, 232, 235, 240, 261
welfare state and, in¬‚uence on, 6
in Canada, 245
deindustrialization, 16, 195“6, 274“5
in Denmark,
capital market openness and, 196
employment growth and, 230
cross-national variance in, 185, 192
in OECD nations, 225
domestic factors for, 209, 213
distributive con¬‚ict(s)
effects of, 17, 72, 198, 201, 207
centralized bargaining and, 36
empirical evidence for, 191“208
in postwar Europe, 35“6
in Finland, 210
d9/d1 earnings ratio, 52
government CoG and, 196
government consumption and,
Earned Income Tax Credit. See EITC
earning equality
government transfers and, 198
skills investment and, 20
institutional effects of, 201“7
economic redistribution. See
labor markets and, 185, 275
labor protection levels and, 275
The Economist, 226
national institutions™ role in, 186“91,
educational system(s)
in Canada (levels of ), 41
negative trade balances™ in¬‚uence on,
gender-based access to, 87“9
in postwar Europe, 41
North-South trade in¬‚uences on,
skill systems and, 111
in US, 41
objections, potential, 201
EITC (Earned Income Tax Credit),
partisanship and, 207“8
255, 256
productivity measures for, 212
rates of, variance in, 185
coalition creation after, 155
retirement as effect of, 201, 275
time inconsistency problems and,
social protection and, in¬‚uence on,
role in, 125
electoral politics, 12“14, 25. See also
sources of, 208“14
political parties
in Sweden, 185
economic redistribution and, 12
trade openness and, 184, 196
government spending and, 17
in US, 185, 210
New Deal policies and, 12
vocational training activity and,
partisanship in, 24“5, 149
power resources model and, 12
wage compression as result of, 275
time inconsistency problems for, 14
welfare state and, 184, 191


Engel™s Law, 214, 233
electoral system(s), 24, 124, 163“4. See
EPL (employment protection
also electoral politics
legislation), 46
center left /center right government
bene¬ts administration as part of,
demographics for, 157
exogenous shocks and, 188
calculations for, 48
key indicators of, 156
collective dismissal rules in, 49
political leader incentives within,
composite index for, 46
175, 189
individual dismissal rules in, 49
in postwar Europe, 32
industrial relations systems and,
proportionality in, 157
voter expectations under, 155
in Japan, 48
Elkin, Stephen, 12
national rankings for, 49, 51
Ellwood, David, 256
in OECD nations, 47
unemployment replacement rates in,
“coordinating capacity” for, 38
employee investment in, 36
error correction model
full-time employee regulation by,
(deindustrialization), 193
lagged dependent variables in, 193,
part-time employee regulation by,
Esping-Andersen study, 137, 138
in welfare state, role of, 7“8
earnings-related bene¬ts in, 138
Employment and Trade Union Act
means-tested bene¬ts in, 138,
employment gap
US v. postwar Europe, 70
Meltzer-Richard model and, 138
employment protection
Estevez-Abe, Margarita, 31
deindustrialization™s in¬‚uence on,
exchange rates
PPP and, 219
in France, 258
real, 219
mean index for, 258
“exit options”
employment protection legislation. See
in welfare state, 7
exogenous shocks, 188, 194, 200
employment rates, 228“46
electoral systems and, 188
for agriculture, 69
transfers of, 204
in Denmark, 260
dynamic model for, 243
female labor force participation and,
deindustrialization rates in, 210
selective deregulation in, 258
in Germany, 63
¬‚exible list system, 175
in Ireland, 63
food stamps (US), 45
part-time, 266
productivity in¬‚uence on, 228
under PR political systems, 161
replacement rates™ in¬‚uence on,
company based training in, 56
tax structure in¬‚uence on, 243
coordinated industrialization issues
taxation and, 241, 245
in, 44
work volume™s effect on, 265“7


service employment in, 252
electoral system in, 157
SPD in, 159, 272
employment protections in, 258
trade services in, liberalization of,
Popular Front party in, 33
school-based vocational training
unemployment rates in, 64
systems in, 57
welfare state in, 8
full-time employment
Germany Basic Law, 272
employer regulation of, 259
comparative institutional advantage,
Ganzeboom, Harry, 116
and, 15
Garrett, Geoffrey, 17
transitory effects of, 200
GATT (General Agreement on Trade
welfare state and, 7, 184
and Tariffs), 40, 45
government. See center left
gender inequality
governments; center right
in asset model, 87“9, 90
governments; coalition
daycare and, 88“9
educational choices and, structure of,
government employment
guarantees, in US, 45
family leave policies and, 88“91
private sector employment v., 235,
indirect in¬‚uence of, 105
in labor markets, 18, 27
government spending
in public sector, 88“9
“Baumol effect” in, 197
skills investment and, 25“8
consumption as factor for, 197
in social policy preferences theory,
electoral politics and, 17
78, 106
growth in, 183
social transfer programs and, 88“90,
institutionalized parties and,
“statistical discrimination” and, 25
for social protection, 104
General Agreement on Trade and
trade expansion as result of, 183
Tariffs. See GATT
for vocational training activity,
general skill workers. See also vocational
training activity
government transfers, 198
public goods and, 131
social protection and, 111
Hall, Peter, 246
general skills system, 57
high protection countries, 63
in asset model, 86, 117
reform policies, 276
Germany (postwar)
replacement rate changes in, 63
apprenticeship systems in, 56
vocational training and, 59
Basic Law in, 272
human capital, 77. See also vocational
CDU/CSU in, 159
training activity
centralized bargaining systems in,
as investment, 77
coordinated industrialization in,
dispersed redistribution of, 138
FDP in, 158
elasticity of services, 238
machine tool industries in,
market, 78


degree of institutionalization in, 131
income(s) (cont.)
in empirics theory, 144
in Meltzer-Richard model, 78
government spending and, 147
men v. women and, 88, 105
group preferences™ in¬‚uence on,
protection measures for, 52, 58
132“3, 146
redistribution of, 13, 163
high/low voters as part of, 129
in social policy preferences theory,
individual incentives within, 130
101, 106
leaders within, 131, 134
social protection and, 77
measurement factors for, 146
social spending and, 112
measurement of, 174“6
spending (redistributive) and, 85,
membership fees as part of, 131
party organization within, 130“2
taxation of, 35
policy selection within, 134“6
income protection, 52, 58, 132
private economic agents within, 130
after-tax/transfer coef¬cients and, 52
sincere voting within, 129
d9/d1 earnings ratios, 52
skill speci¬city in, 129
in OECD countries, 53
social insurance commitment by,
through public insurance system, 72
retributive reasons for, 128
voting within, 134
tax and transfer schemes and, 52
institutionalized parties model
in time inconsistency problems, 128
contingency requirement for, 167
unemployment protection and, 58
equation derivation for, 166“7
income redistribution, 13. See also
group utility function for, 164
median voter utility function for, 165
tax and transfer scheme™s in¬‚uence
search costs for, 164
on, 21, 22
third party entry in, 167“8
income taxation. See also taxation
insurance. See also redistribution
in postwar Europe, 35
employer-sponsored, 186
individual dismissal rules, 49
income loss and, 13
income protection and, 72
coordinated, 43“4
old age, 128
in France, coordinated, 44
social, 21“5
in Germany, coordinated, 43
unemployment, 12
in Italy, coordinated, 44
insurance model(s), 84“5, 87, 91
regression analysis for, 212
Moene-Wallerstein model and,
in UK, coordinated, 44
in US, decline of, 66
relative risk aversion in, 84, 85
inequality reduction
International Social Survey Program.
regression results for, 153
institutionalized parties, 129“36
International Standard Classi¬cation of
asset speci¬city and, 136
Occupations. See ISCO-88
centralization in, 146
international trade, 66
centralized parties within, 174“6
Ireland (postwar)
collective goods production in,
coalition governments in, 156
130“1, 132
employment rates in, 63
commitment capacity for, 177
proportionality index for, 157
corporatism in, 146


international division of, 60
ISCO-88 (International Standard
in Meltzer-Richard model, 80,
Classi¬cation of Occupations), 26,
under New Labour Party, 254
degrees of specialization in, 93
regulation of, 246
skills levels criteria in, 93, 94
risks in, 186“91
ISSP (International Social Survey
in “selective and shielded
Program), 27, 78, 95
regulation,” 257
Meltzer-Richard model and, 91, 116
social protection for, 187
vocational training activity within,
in trade liberalization strategy,
welfare state and, role in, 6
Casa Integrazione in, 52
labor union(s)
company emphasis training in, 56
centralized bargaining and, 43
coordinated industrialization issues
external, 49
in, 44
in Meltzer-Richard model, 97,
employment protection in, 51“2
in¬‚ation factors in, 64
in postwar Europe, 37, 38, 62
real exchange rates in, 224
rate index for, 41
unemployment insurance in, 59
redistribution and, 150, 154
wage compression in, 224
in UK, 45
law of one price, 219
Japan (postwar), 48“9
liberal capitalism. See “liberal market
company emphasis training in, 56,
liberal case reform policies, 276
corporate welfare model of, 65
“liberal market economies,” 25,
economic growth in, 66
EPL index in, 48
liberal political parties, 17
equity markets in, 66


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