How Policies Shape Politics: Labour Market Policy Conflicts and Coalitions in Five Western European Countries

This article explores how new social needs are politicised at the elite level. Whilst several authors argue theoretically that the economic conflict is becoming multidimensional (Bonoli and Natali 2012), I am able to demonstrate empirically that the conflict on labour market policy is structured according to two separate conflict lines. The findings of an analysis of five Western European countries indicate that depending on the labour market legacies, political actors are involved in an intense debate not only over the degree of generosity and state intervention, but also over the nature and the extent to which specific activation policies should be promoted. Moreover, I analyse the question whether Social democratic parties arether address the interests of the labour market insiders or outsiders (Rueda 2005; Schwander 2012). I argue that the strategy of the Social Democrats differs depending on the institutional legacies which are present in a labour market regime.