Socio-Economic Review - Advance Access

The effect of public opinion on social policy generosity

Kenworthy, L. — 2009-06-28

Based on analysis of cross-country and over-time patterns in affluent countries in the late 1980s and the 1990s, Brooks and Manza contend that public opinion is a key cause of social policy generosity. A closer look at the evidence suggests reason for skepticism about this inference.

DISCUSSION: A new labour economics?

Osterman, P., Auer, P., Gautie, J., Marsden, D. — 2009-06-16

What if Robin Hood is a social conservative? How the political response to increasing inequality depends on party polarization

Finseraas, H. — 2009-06-13

This paper examines how political competition on a non-economic dimension affects redistribution. More specifically, the paper argues that a high degree of party polarization on a non-economic policy dimension modifies the political response to growing income inequalities. Data from the World Values Survey and the Comparative Manifesto Project are employed to show that party polarization on a traditional moral dimension of politics is associated with a weaker relationship between income and subjective position on the Left–Right scale. Because party polarization is associated with a weaker relationship between income and leftism, the paper claims that the political response to increases in inequality will be weaker in polarized countries. The empirical analysis using redistribution data from the Luxembourg Income Study demonstrates that the positive effect of increases in market inequality on redistribution is lower when party polarization on the non-economic dimension is high.

Recomposed institutions: smaller firms' strategies, shareholder-value orientation and bank relationships in Germany

Bluhm, K., Martens, B. — 2009-05-21

Small- and medium-sized enterprises (SMEs) are embedded differently in institutional spheres than large corporations. This influences how they are affected by institutional change. Based on our observations, scholars of the transforming German coordinated market economies are mostly focusing on large enterprises. In contrast, we explore how institutional change in the financing sector affects privately owned SMEs, especially those engaged in manufacturing. Additionally, we asked who is pushing SMEs towards a stronger shareholder-value orientation and how they respond to these changes. Although the direct impact of capital market actors on German SMEs is still limited, we find a diffusion of advanced management tools, which is linked in the literature to the shareholder-value concept, and a redefinition of firm–bank relationships without embracing the arms'-length, equity market-oriented mode of finance. These two features constitute a recomposition that includes institutional continuity as well as change.