Why did Austrian Business Oppose Welfare Cuts?

How the Organization of Interests Shapes Business Attitudes Toward Social Partnership

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

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.
OriginalsprogEngelsk
TidsskriftComparative Political Studies
Vol/bind47
Udgave nummer7
Sider (fra-til)966-992
ISSN0010-4140
DOI
StatusUdgivet - jun. 2014
Udgivet eksterntJa

Citer dette

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title = "Why did Austrian Business Oppose Welfare Cuts?: How the Organization of Interests Shapes Business Attitudes Toward Social Partnership",
abstract = "In recent decades, business interests became protagonists of welfare retrenchment in many countries. In contrast, Austria’s national business organization, the WK{\"O} (Wirtschaftskammer {\"O}sterreich), 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 WK{\"O}’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.",
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Why did Austrian Business Oppose Welfare Cuts? How the Organization of Interests Shapes Business Attitudes Toward Social Partnership. / Paster, Thomas.

I: Comparative Political Studies, Bind 47, Nr. 7, 06.2014, s. 966-992.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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