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11. Housing and Voting in Germany Multi-Level Evidence for the Association between House Prices and Housing Tenure and Party Outcomes, 1980–2017

Author:
Paul Beckman, Barbara Fulda, and Sebastian Kohl
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Traditional predictors of election outcomes in Germany are increasingly losing their explana- tory power. Rather than new cultural divides, this paper introduces the idea of housing cleav- ages, i.e., homeownership versus tenancy and high-price versus low-price areas, drawing on macro data for electoral districts and urban neighborhoods from the last three elections (2009– 2017) in combination with Immoscout24 ad price data and microdata from the ALLBUS sur- vey (1980–2016). Although, due to its low homeownership rate and conservative house price development, Germany represents a least-likely case for housing to be of importance, we find housing effects beyond traditional predictors. Generally, we find that high house prices, house price increases, and homeownership are positively associated with voting for center-right par- ties and voter turnout, while social tenancy is associated with votes for the left, but these effects weaken over time due to embourgeoisement effects. Beyond this expected left-right distinction between tenants and wealthier homeowners, we also find outliers along two other dimensions. First, there are center-periphery effects that housing can better capture than simple geographical divisions; second, house prices contain a populist dimension, for example when skyrocketing rents increase votes for the urban left or regions where house prices lag behind benefit the AfD. The paper argues against the more causal self-interest and socialization theories of the influence of housing on voting and instead suggests considering housing as an important socioeconomic proxy to explain political outcomes.
Topic:
Elections, Voting, Homeownership, and Housing
Political Geography:
Europe, Germany, and Central Europe

12. Causal Mechanism and Explanation in Social Science

Author:
Renate Mayntz
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
In the social sciences, the development of a specific social event or structure is often ex- plained by a statistical correlation between an independent variable and a variable assumed to be dependent upon it. This mode of explanation is contested by a methodology of causal reconstruction that operates with the concept of mechanisms. A mechanism is a process in which a set of linked steps leads from initial conditions to an outcome or effect. Mechanisms are general concepts, subjecting individual cases to a general category. Except for the litera- ture dealing specifically with the concept, the term “mechanism” is often used without defi- nition of its substantive content; there is no agreement with respect to the unique or plural character of the initial conditions, nor to the structure of the causal path leading to a specific outcome. Nevertheless, mechanisms have played a crucial role in detailed causal analysis of complex historical events, such as the financial crisis of 2008 and German unification of 1989.
Topic:
Cold War, Nationalism, Financial Crisis, and Unification
Political Geography:
Europe, Germany, West Germany, Central Europe, and East Germany

13. The German Undervaluation Regime under Bretton Woods How Germany Became the Nightmare of the World Economy

Author:
Martin Höpner
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Germany is an undervaluation regime, a regime that steers economic behavior towards deterioration of the real exchange rate and thereby towards export surpluses. This regime has brought the eurozone to the brink of collapse. But it is much older than the euro. It was established during the Bretton Woods years and has survived all subsequent European currency orders. The regime operates in two steps: competitive disinflation against trading partners; and resistance against correcting revaluations. The Bretton Woods order provid- ed perfect conditions for the establishment and perpetuation of the regime: it was flexible enough for sufficient macroeconomic policy autonomy to bring about differential inflation rates, and sticky enough to delay and minimize revaluations.
Topic:
Political Economy, Regional Cooperation, Capitalism, and Inflation
Political Geography:
Europe, Germany, and Central Europe

14. Is There a Motherhood Penalty in Academia? The Gendered Effect of Children on Academic Publications

Author:
Mark Lutter and Martin Schroder
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Based on data that tracks CV and publication records as well as survey information from sociologists in German academia, we examine the effects of parenthood on the publication output of male and female academics. Results indicate that having children leads to a sig- nificant decline in the number of publications by women, while not affecting the number of publications by men. We also find that the gendered effect of children on productivity hardly mitigates differences in publication output between men and women, as women still publish about 20 percent less than men after controlling for the adverse effects of chil- dren on productivity. We further find that the gendered effect of childbearing depends partly on prior levels of women’s academic achievements, which suggests mechanisms of performance-driven self-selection. Lower-performing women tend to suffer a stronger motherhood penalty, while the publication output of more successful women (who have been granted academic awards) is not reduced through childbirth. The results indicate that women are better at managing the “double burden” of parenthood and career if external, award-giving committees have bestowed prestige upon them and indicated their potential for a scientific career. Overall, these findings contribute to a better understanding of how to reduce the adverse effect of children on female publication output.
Topic:
Gender Issues, Children, Women, Feminism, and Academia
Political Geography:
Europe, Germany, and Central Europe

15. An Overview of German New Economic Sociology and the Contribution of the Max Planck Institute for the Study of Societies

Author:
John Wilkinson
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
New economic sociology (NES) in Germany has many similarities with economic sociology in the United States in its conscious efforts to institutionalize its presence within the broader sociology community, its promotion of a canon via handbooks, and its focus on the sociology of markets. At the same time, it differs in its stronger connections to the German classics, the greater vitality of a macrosociological tradition in Germany, the prior existence of a “bridging” generation of economic sociologists, and its later consolidation in a period of neo-liberal globalization, all of which have giv- en NES in the German-speaking world a distinctive character. In addition, it has been influenced by successive waves of French economic sociology – Bourdieu, convention, and actor-network theory – and its bilingual academic tradition has ensured its integration into English-speaking NES. In its contribution to the sociology of markets, the fact that NES emerged later in Germany than in the US led to a greater concern with quality markets rather than commodity markets, and a concomitantly greater attention to issues of value and price. These latter themes, in their turn, establish a continuity with German economic sociology’s enduring concern with understanding the role of money. Not surprisingly, therefore, German NES is now making key contributions to discussions on the sociol- ogy of money and is increasingly situating its analysis within the broader dynamic of capitalism and current processes of financialization.
Topic:
Economics, Globalization, Sociology, and Capitalism
Political Geography:
Europe, Germany, and Central Europe

16. Strong Firms, Weak Banks The Financial Consequences of Germany’s Export-Led Growth Model

Author:
Benjamin Braun and Richard Deeg
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The financial foundation of Germany’s manufacturing success, according to the compara- tive capitalism literature, is an ample supply of long-term capital, provided to firms by a three-pillar banking system and “patient” domestic shareholders. This premise also informs the recent literature on growth models, which documents a shift towards a purely export- led growth model in Germany since the 1990s. We challenge this common assumption of continuity in the German financial system. Export-led growth, characterized by aggregate wage suppression and high corporate profits, has allowed non-financial corporations to increasingly finance investment out of retained earnings, thus lowering their dependence on external finance. This paper documents this trend and shows that business lending by banks has increasingly been constrained on the demand side, reducing the power – and relevance – of banks vis-à-vis German industry. The case study suggests a need for students of growth models to pay greater attention to the dynamic interaction between institutional sectors in general, and between the financial and the non-financial sectors in particular.
Topic:
Banks, Exports, Institutionalism, and Corporations
Political Geography:
Europe, Germany, and Central Europe

17. Changing Perspectives in Political Economy

Author:
Renate Mayntz
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The history of a research field called political economy dates back to the eighteenth century, giving rise to a variety of disciplinary approaches, and experienced a renaissance as a mul- tidisciplinary field after the Second World War, combining economic, political science, and sociological approaches. The divergence between economic globalization and the nation- ally restricted scope of economic policy directs interest to the relationship between politics and the economy. A quantitative analysis of the articles published in two dedicated political economy journals shows major trends of the developing research field. The relationship between politics and economy is interpreted rather widely, and research is largely focused on Western capitalist nations. In conclusion, two avenues for further research in the field are briefly discussed.
Topic:
Political Economy, Regional Cooperation, Capitalism, and Global Political Economy
Political Geography:
Europe, Germany, Central Europe, and Western Europe

18. Does Pattern Bargaining Explain Wage Restraint in the German Public Sector?

Author:
Donato Di Carlo
Publication Date:
04-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
German public sector wage restraint has been explained through the presence of a specific type of inter-sectoral wage coordination in the industrial relations system – i.e., export sector-led pattern bargaining. This paper has a twofold ambition. First, as a literature assessing exercise, I review the literature in industrial relations and comparative political economy (CPE) and find that (1) the origins and mechanics of inter-sectoral wage coordination through pattern bargaining have never been laid out clearly; (2) the mechanisms of the pattern bargaining thesis have never been tested empirically; and (3) the CPE literature reveals a limiting export-sector bias. Second, as a theory-testing exercise, I perform hoop tests to verify whether the pattern bargaining hypothesis can really account for wage restraint in the German public sector. I find that Germany cannot be considered a case of export sector-driven pattern bargaining. These findings challenge core tenets of a longstanding scholarship in both CPE and industrial relations. Most importantly, they open a new research agenda for the study of public sector wage-setting that should shift its focus to public sector employment relations, public finance, public administrations, and the politics of fiscal policy
Topic:
International Political Economy and International Affairs
Political Geography:
Germany

19. International Monetary Regimes and the German Model

Author:
Fritz W Scharpf
Publication Date:
02-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The end of the Bretton Woods regime and the fall of the Iron Curtain deepened the export orientation of the German model of the economy. Only after entry into the Monetary Union, however, did rising exports turn into a persistent export–import gap that became a problem for other eurozone economies. This Discussion Paper shows why the present asymmetric euro regime will not be able to enforce their structural transformation on the German model. Neither will German governments be able to respond to demands that would bring the performance of the German economy closer to eurozone averages. Instead, it is more likely that present initiatives for financial and fiscal risk sharing will transform the Monetary Union into a transfer union.
Topic:
International Political Economy and International Affairs
Political Geography:
Germany

20. Group Representation for the Working Class? Opinion Differences among Occupational Groups in Germany.

Author:
Lea Elsässer and Armin Schäfer
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
In this paper, we take up the burgeoning debate about the underrepresentation of the working class in politics. In the literature section we discuss theories of group representation and look at recent empirical studies of responsiveness that have begun to disaggregate public opinion by sociodemographic categories. Empirically, we analyze a dataset of more than 700 survey items collected in Germany between 1980 and 2012. The analysis shows that respondents within one social class are more similar to each other than to members of other classes and that class-based differences outweigh those of education, region, or gender. While opinion differences are not always large, they can reach 50 percentage points. There are frequently gaps of between 20 or 30 percentage points in support for or opposition to policy changes. Since workers’ opinions tend to differ from the opinions of those groups who are well represented in parliament, their numerical underrepresentation might bias decisions against them, as recent studies suggest.
Topic:
Gender Issues, Politics, Race, Social Stratification, and Sociology
Political Geography:
Germany