The institutional arrangements governing skill formation are widely seen as a key element in the institutional constellations defining 'varieties of capitalism' across the developed democracies. This ...book explores the origins and evolution of such institutions in four countries - Germany, Britain, the United States and Japan. It traces cross-national differences in contemporary training regimes back to the nineteenth century, and specifically to the character of the political settlement achieved among employers in skill-intensive industries, artisans, and early trade unions. The book also tracks evolution and change in training institutions over a century of development, uncovering important continuities through putative 'break points' in history. Crucially, it also provides insights into modes of institutional change that are incremental but cumulatively transformative. The study underscores the limits of the most prominent approaches to institutional change, and identifies the political processes through which the form and functions of institutions can be radically reconfigured over time.
This book contributes to emerging debates in political science and sociology on institutional change. Its introductory essay proposes a new framework for analyzing incremental change that is grounded ...in a power-distributional view of institutions and that emphasizes ongoing struggles within but also over prevailing institutional arrangements. Five empirical essays then bring the general theory to life by evaluating its causal propositions in the context of sustained analyses of specific instances of incremental change. These essays range widely across substantive topics and across times and places, including cases from the United States, Africa, Latin America, and Asia. The book closes with a chapter reflecting on the possibilities for productive exchange in the analysis of change among scholars associated with different theoretical approaches to institutions.
The French and German political economies have been significantly reconfigured over the past two decades. Although the changes have often been more piecemeal than revolutionary, their cumulative ...effects are profound. The authors characterize the changes that have taken place as involving the institutionalization of new forms of dualism and argue that what gives contemporary developments a different character from the past is that dualism is now explicitly underwritten by state policy. They see this outcome as the culmination of a sequence of developments, beginning in the field of industrial relations, moving into labor market dynamics, and finally finding institutional expression in welfare state reforms. Contrary to theoretical accounts that suggest that institutional complementarities support stability and institutional reproduction, the authors argue that the linkages across these realms have helped to translate employer strategies that originated in the realm of industrial relations into a stable, new, and less egalitarian model with state support.
Contemporary approaches to varieties to capitalism are often criticized for neglecting issues of institutional change. This paper develops an approach to institutional change more extended than the ...one provided in Hall and Soskice (in Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, Oxford, Oxford University Press, 2001) but congruent with its varieties-of-capitalism perspective. It begins by outlining an approach to institutional stability, which suggests that the persistence of institutions depends not only on their aggregate welfare effects but also on the distributive benefits that they provide to the underlying social or political coalitions; and not only on the Pareto-optimal quality of such equilibria but also on continuous processes of mobilization through which the actors test the limits of the existing institutions. It then develops an analysis of institutional change that emphasizes the ways in which defection, reinterpretation and reform emerge out of such contestation and assesses the accuracy of this account against recent developments in the political economies of Europe. The paper concludes by outlining the implications of this perspective for contemporary analyses of liberalization in the political economy.
▪ Abstract This article provides an overview of recent developments in historical institutionalism. First, it reviews some distinctions that are commonly drawn between the “historical” and the ...“rational choice” variants of institutionalism and shows that there are more points of tangency than typically assumed. However, differences remain in how scholars in the two traditions approach empirical problems. The contrast of rational choice's emphasis on institutions as coordination mechanisms that generate or sustain equilibria versus historical institutionalism's emphasis on how institutions emerge from and are embedded in concrete temporal processes serves as the foundation for the second half of the essay, which assesses our progress in understanding institutional formation and change. Drawing on insights from recent historical institutional work on “critical junctures” and on “policy feedbacks,” the article proposes a way of thinking about institutional evolution and path dependency that provides an alternative to equilibrium and other approaches that separate the analysis of institutional stability from that of institutional change.
This article investigates the politics of change in coordinated market econo\mies, and explores why some countries (well known for their highly cooperative arrangements) manage to sustain ...coordination when adjusting to economic transformation, while others fail. The authors argue that the broad category of “coordinated market economies” subsumes different types of cooperative engagement: macrocorporatut forms of coordination are characterized by national-level institutions for fostering cooperation and feature a strong role for the state, while forms of coordination associated with enterprise cooperation more typically occur at the level of sector or regional institutions and are often privately controlled. Although these diverse forms of coordination once appeared quite similar and functioned as structural equivalents, they now have radically different capacities for self-adjustment. The role of the state is at the heart of the divergence among European coordinated countries. A large public sector affects the political dynamics behind collective outcomes, through its impact both on the state's construction of its own policy interests and on private actors' goals. Although a large public sector has typically been written off as an inevitable drag on the economy, it can provide state actors with a crucial political tool for shoring up coordination in a postindustrial economy. The authors use the cases of Denmark and Germany to illustrate how uncontroversially coordinated market economies have evolved along two sharply divergent paths in the past two decades and to reflect on broader questions of stability and change in coordinated market economies. The two countries diverge most acutely with respect to the balance of power between state and society; indeed, the Danish state—far from being a constraint on adjustment (a central truism in neoliberal thought)—plays the role of facilitator in economic adjustment, policy change, and continued coordination.
The advanced economies are experiencing a set of shared challenges in the transition to a new "knowledge economy" characterized by rapid technological innovation and associated with a heightened ...premium on higher education. Yet individual countries are charting rather different courses as they navigate this transition. This article examines divergent trajectories of change in three coordinated market economies—Germany, Sweden, and the Netherlands. It argues that differences in the organization of business and labor, and in the institutions that structure their interactions with each other and with the state, have produced different coalitional alignments and led these countries onto divergent paths toward the knowledge economy today.
The political‐economic institutions that have traditionally reconciled economic efficiency with social solidarity in the advanced industrial countries, and specifically in the so‐called ‘coordinated ...market economies’, are indisputably under pressure today. However, scholars disagree on the trajectory and significance of the institutional changes we can observe in many of these countries, and they generally lack the conceptual tools that would be necessary to resolve these disagreements. This article attempts to break through this theoretical impasse by providing a framework for determining the direction, identifying the mode, and assessing the meaning of the changes we can observe in levels of both economic coordination and social solidarity.
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