Working Paper: CEPR ID: DP13130
Authors: Postdoc Molinder; Tobias Karlsson; Kerstin Enflo
Abstract: This paper revisits the Power Resource Theory by testing one of its more influential claims: the relationbetween the strength of the labor movement and the reduction of industrial conflicts. Using panel datatechniques to analyze more than 2,000 strikes in 103 Swedish towns we test whether a shift in the balanceof power towards Social Democratic rule was associated with fewer strikes. The focus is on the formativeyears between the first general election in 1919 and the famous Saltsjöbaden Agreement in 1938, theperiod when Sweden went from a country of fierce labor conflicts to a state of industrial peace. Thespatial dimension provides new possibilities to test the theory. We find that Social Democratic powerreduced strike activity, but only in towns where union presence was strong. Powerful unions in themselvesdid not reduce local strike activity. On the contrary, we find that the rise of the Social Democratic Partyin municipal governments offset about 45 percent of the estimated effect of growing union presenceon industrial conflicts. We do not see any significant tangible concessions in terms of increased socialspending by local governments after a left-wing victory as predicted by Power Resource Theory. Insteadthe mechanism leading to fewer strikes appears to be related to corporatist explanations.
Keywords: Power Resource Theory; Industrial Conflicts; Strikes; Local Labor Markets
JEL Codes: N34; N44; H53; J51
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| social democratic power (P26) | fewer strikes (J52) |
| strong union presence (J51) | social democratic power reduces strikes (J52) |
| growing union presence (J51) | industrial conflicts (J52) |
| social democratic power (P26) | union leaders calm labor tensions (J51) |
| political influence and union presence (J58) | strike activity (J52) |