Abstract
Industrial relations and welfare state are interrelated. On the basis of time-series data for 20 OECD countries, this paper discusses and tests the impact of industrial relations on social expenditures, including 'social pacts' as a means of combining wage moderation and welfare state reforms. The findings suggest that industrial relations have an impact mainly through the differential effects of distinct bargaining systems: a minor impact results from their externalities. The major impact ensues from their differing degrees of politicization, leading to higher expenditures in the case of peak-level arrangements, as compared to more decentralized systems. Hence, the widely assumed potential of social pacts for welfare state reforms has been exaggerated.
| Original language | English |
|---|---|
| Pages (from-to) | 635-658 |
| Number of pages | 24 |
| Journal | British Journal of Industrial Relations |
| Volume | 43 |
| Issue number | 4 |
| Publication status | Published - Dec 2005 |