English
 
Help Privacy Policy Disclaimer
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Journal Article

Why Did Austrian Business Oppose Welfare Cuts? How the Organization of Interests Shapes Business Attitudes Toward Social Partnership

MPS-Authors
/persons/resource/persons41266

Paster,  Thomas
Institutioneller Wandel im gegenwärtigen Kapitalismus, MPI for the Study of Societies, Max Planck Society;

Fulltext (public)

CPS_47_2014_Paster.pdf
(Any fulltext), 814KB

Supplementary Material (public)
There is no public supplementary material available
Citation

Paster, T. (2014). Why Did Austrian Business Oppose Welfare Cuts? How the Organization of Interests Shapes Business Attitudes Toward Social Partnership. Comparative Political Studies, 47(7), 966-992. doi:10.1177/0010414013488556.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0013-B243-F
Abstract
In recent decades, business interests became protagonists of welfare retrenchment in many countries. In contrast, Austria’s national business organization, the WKÖ (Wirtschaftskammer Österreich), defended welfare programs and social partnership against government initiatives to dismantle them. Drawing on interviews and media reports, this article analyzes the reasons for this deviation, focusing on reforms in two fields: (a) public pensions and (b) social insurance administration. The article suggests that the institutional setup of interest representation in Austria explains this stance better than alternative explanations that focus on competitive advantages. The article identifies compulsory membership, equal voting rights, and encompassing organization as the relevant features of the institutional setup. These features shaped the WKÖ’s social policy attitudes in two ways: first, by ensuring a strong role for small firms, and second, by reducing the vulnerability of the organization to discontented minorities. The findings point to the importance of organizational structures in shaping associational policy preferences.