Employer Preferences and Social Policy: Business and the Development of Job Security Regulations in Germany Since World War I

22 Pages Posted: 12 Jul 2010

See all articles by Patrick Emmenegger

Patrick Emmenegger

University of Southern Denmark

Paul Marx

IZA Institute of Labor Economics

Abstract

This article examines the role of business in the historical development of job security regulations in Germany from their creation in the inter-war period to the dawn of the crisis of the 'German Model' in the 1980s. It contrasts the varieties of capitalism approach, which sees business as protagonists, or at least consenters, in the development of job security regulations with a conflict-oriented approach, which sees the labour movement as protagonists and business as antagonists in the development of job security regulations. The empirical analysis is based on primary and secondary sources and shows that at no point in time German employers preferred strict over flexible job security regulations. Quite the contrary, high levels of job security regulations have been forced upon employers by radicalized labour movements in periods of business weakness in the aftermath of both World Wars.

Keywords: job security regulations, Germany, institutional change, varieties of capitalism, power resources, industrial relations

JEL Classification: K31, N34, N44

Suggested Citation

Emmenegger, Patrick and Marx, Paul, Employer Preferences and Social Policy: Business and the Development of Job Security Regulations in Germany Since World War I. IZA Discussion Paper No. 5043. Available at SSRN: https://ssrn.com/abstract=1638479

Patrick Emmenegger (Contact Author)

University of Southern Denmark ( email )

Campusvej 55
DK-5230 Odense, 5000
Denmark

Paul Marx

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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