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Why were European economies able to pursue the simultaneous commitment to full employment and welfare state expansion during the first decades of the postwar period? This book highlights the critical importance of a political exchange between unions and governments, premised on wage moderation in exchange for the expansion of social services and transfers. The strategies pursued by these actors in these political exchanges are influenced by existing wage bargaining institutions, the character of monetary policy and by the level and composition of social policy transfers.
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In an effort to explain cross-national and temporal changes in employment outcomes, this book examines a political exchange between unions and governments, during which unions voluntarily agreed to pursue moderate wage settlements, while governments responded with an expansion of social policy transfers. The book shows how the growth in the tax burden necessary to finance existing social policy commitments has undermined the effectiveness of this political exchange and its ability to restore high levels of employment.
About the Author:
Isabela Mares is Assistant Professor of Political Science at Stanford University. She is the author of The Politics of Social Risk: Business and Welfare Development (Cambridge University Press, 2003), which won the Gregory Luebbert Award of the American Political Science Association for best book in comparative politics. Her articles have appeared in International Organization, World Politics, Comparative Political Studies, Politics and Society, Governance, the Journal of Public Policy, Studie Politiczne and various edited volumes.
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- PublisherCambridge University Press
- Publication date2006
- ISBN 10 0521674115
- ISBN 13 9780521674119
- BindingPaperback
- Number of pages290
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