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The Power Resource Theory Revisited: What Explains the Decline in Industrial Conflicts in Sweden?

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  • Enflo, Kerstin
  • Molinder, Jakob
  • Karlsson, Tobias
Abstract
This paper revisits the Power Resource Theory by testing one of its more influential claims: the relation between the strength of the labor movement and the reduction of industrial conflicts. Using panel data techniques to analyze more than 2,000 strikes in 103 Swedish towns we test whether a shift in the balance of power towards Social Democratic rule was associated with fewer strikes. The focus is on the formative years between the first general election in 1919 and the famous Saltsjöbaden Agreement in 1938, the period when Sweden went from a country of fierce labor conflicts to a state of industrial peace. The spatial dimension provides new possibilities to test the theory. We find that Social Democratic power reduced strike activity, but only in towns where union presence was strong. Powerful unions in themselves did not reduce local strike activity. On the contrary, we find that the rise of the Social Democratic Party in municipal governments offset about 45 percent of the estimated effect of growing union presence on industrial conflicts. We do not see any significant tangible concessions in terms of increased social spending by local governments after a left-wing victory as predicted by Power Resource Theory. Instead the mechanism leading to fewer strikes appears to be related to corporatist explanations.

Suggested Citation

  • Enflo, Kerstin & Molinder, Jakob & Karlsson, Tobias, 2018. "The Power Resource Theory Revisited: What Explains the Decline in Industrial Conflicts in Sweden?," CEPR Discussion Papers 13130, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13130
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    References listed on IDEAS

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    Cited by:

    1. Enflo, Kerstin & Molinder, Jakob & Karlsson, Tobias, 2019. "More Power to the People: Electricity Adoption, Technological Change and Social Conflict," CEPR Discussion Papers 13986, C.E.P.R. Discussion Papers.
    2. Eric Melander, 2020. "Transportation Technology, Individual Mobility and Social Mobilisation," CAGE Online Working Paper Series 471, Competitive Advantage in the Global Economy (CAGE).

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    More about this item

    Keywords

    Power resource theory; Industrial conflicts; Strikes; Local labor markets;
    All these keywords.

    JEL classification:

    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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