How and why industrial relations influence party effect upon welfare state retrenchment. A comparison of the Netherlands, Denmark, Germany and France

Abstract

In the analysis of redistribution, not only models based on the territory principle should be considered, but also functionally structured redistribution like collectively negotiated welfare benefits. Combining the methods of difference and agreement with process tracing the article shows that, in the Netherlands and Denmark, the high level of development of functionally arranged redistribution explains the strong party effect on processes of retrenchment in pension; on the other side, the smaller room for manoeuvre for political parties in Germany and France can be linked to the dominance of territorially organized redistribution. Industrial relations and models of functional redistribution affect the influence of political parties on welfare state retrenchment.