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1. Not All Firms Are Created Equal SMEs and Vocational Training in the UK, Italy, and Germany

Author:
Chiara Benassi, Niccolò Durazzi, and Johann Fortwengel
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Why do skill formation systems put SMEs at greater disadvantage in some countries than others vis-à-vis large employers? By comparing vocational education and training (VET) institutions and their differential effect on firms of different sizes across three countries (UK, Italy, and Germany), we show that the design of VET has profound implications for shap- ing the ability of SMEs to use institutions as resources. In particular, quasi-market institu- tions in the UK amplify SMEs’ disadvantage, while non-market coordinating institutions in Italy and Germany narrow the gap between SMEs and large employers. By unpacking the comparative disadvantage of SMEs, we offer important nuances to the argument that institutions help firms coordinate their business activities in different varieties of capitalism.
Topic:
Political Economy, Capitalism, and Vocational Training
Political Geography:
United Kingdom, Europe, Germany, and Italy

2. Has the “External Constraint” Contributed to Italy’s Stagnation? A Critical Event Analysis

Author:
Lucio Baccaro and Massimo D'Antoni
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Has the strategy of the “external constraint” (voluntarily limiting the country’s policy-mak- ing discretion by tying it to the European mast) contributed to Italy’s stagnation over the past twenty-five years? The existing literature is divided on this question. The dominant in- terpretation is that Italy’s stagnation is due to insufficient liberalization, and that the exter- nal constraint has had no negative and even a positive influence. An alternative interpreta- tion emphasizes the demand compression and supply-side effects of the external constraint. Based on three case studies of public debt management, privatization, and labor market policy, this paper reconstructs the process by which the external constraint has affected out- comes. It argues that it has had a negative impact, but more as a necessary condition than as a sufficient one. In other words, it would probably have been possible to manage the exter- nal constraint differently to produce better outcomes, but without the external constraint, the stagnation would likely have been less deep.
Topic:
Political Economy, European Union, Economic growth, and Liberalism
Political Geography:
Europe, Italy, and Southern Europe

3. 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

4. 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

5. How Are Markets Made?

Author:
Patrik Aspers
Publication Date:
02-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The purpose of this paper is to analyze the making of markets. The paper identifies two ideal-typical processes in which markets are made – organized making and spontaneous making – which are often combined in reality. Organized making is defined as a process in which at least two actors come together and decide on the order of the market. There are two ways of organized making of markets, called “state-governed market making” and “self-governed market making.” Spontaneous making is defined as a process in which the market is an unintended result of actors' activities. The attention sociologists have paid to the issue of market making has been directed largely at organized market making. This paper develops a sociological approach that integrates both spontaneous and organized market making, and identifies three phases of market making. This involves a discussion of empirical cases, and seven hypotheses are presented that make predictions for the two types of market making. The paper provides theoretical tools for studying the making of markets in history, as well as in our own time. Finally, a number of conditions are presented that must be in place if there is to be a market.
Topic:
Economics, Markets, Political Economy, and Political Theory

6. Pragmatismus und wirtschaftliches Handeln

Author:
Jens Beckert
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
What alternatives to rational choice theory do exist to explain economic phenomena? I argue that American pragmatism presents a viable alternative for the explanation of key economic incidences. First I illustrate the foundations of pragmatism using three problems regularly encountered in action theory. Then I show how innovation, institutional change, price formation and actors' preferences can be analyzed based on pragmatist premises. I conclude by reflecting on why pragmatism has found so little recognition in economics.
Topic:
International Relations, Economics, Political Economy, and Political Theory
Political Geography:
United States and America

7. Soziologie kapitalistischer Dynamik

Author:
Christoph Deutschmann
Publication Date:
05-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
I address the "growth miracle“(William Baumol) of modern capitalism. The central point is that the historically unique social dynamics of modern capitalism cannot be conceptualized satisfactorily by theories of “economic growth”; instead, the explanation requires a genuinely sociological approach. The first part of the paper gives a critical summary of the existing modernization-theoretical approaches and outlines an alternative theoretical perspective which is based largely on the interpretations of money by Simmel and Marx. The second part delivers a multi-level approach of capitalist dynamics which culminates in the construction of three growth scenarios, one positive and two negative ones. These scenarios could contribute to illuminating the background of the actual economic crisis.
Topic:
Economics, Political Economy, Political Theory, and Sociology

8. Complex, Historical, Self-reflexive: Expect the Unexpected!

Author:
Wolfgang Streeck and Sandra Mitchell
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The object world of the social sciences is complex, historical and self-reflexive. It generates nonlinear effects, it is unique, and it is able to understand the theories developed about it and respond to them intentionally. Recognizing the emergent, historically contingent and self-organizing nature of the social world, and developing responsive policy vehicles for managing its complexity, requires a shift in our conception of science in general and of economics in particular.
Topic:
Economics, Political Economy, Science and Technology, and Political Theory

9. Von der gesteuerten Demokratie zum selbststeuernden Kapitalismus

Author:
Wolfgang Streeck
Publication Date:
07-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The paper is an expanded and revised version of a lecture given at the 2008 Annual Colloquium of the Max Planck Institute for the Study of Societies (MPIfG). Its subject is the relationship between social theories and political-economic change. The paper's central claim is that theories of society can by nature be fully understood only if related to and interpreted in the horizon of action of a virtual user located in the social world that is being explained. This is illustrated with reference to the development of political macrosociology since the Second World War. Next, five tendencies in today's social sciences are briefly discussed, all of which seem to indicate growing uncertainty about the practical usefulness of basic research in social science, in light of the demise of the democratic nation-state: the transition from Steuerungstheorie to research on “governance”; the departure from participatory models of democracy; the rise of economics to academic and political hegemony; a functionalist, efficiency-theoretical turn in theories of social policy; and growing doubts about the usefulness of a scientistic model of theory. In the final section it is suggested that the social sciences might find new theoretical orientation and practical self-confidence by defending in public discourse its fundamental insights on the limits of a market-driven organization of social life.
Topic:
Democratization, International Political Economy, Political Economy, and Political Theory

10. Flexible Markets, Stable Societies?

Author:
Wolfgang Streeck
Publication Date:
06-2008
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The dissolution of the standard employment relationship since the 1970s has been paralleled by a destabilization of family relations. The paper, which is a slightly revised version of a plenary lecture at the 2008 Meeting of the German Sociological Association, discusses possible connections between the rise of more flexible labor market and family structures, and explores how they might tie in with the declining birth rate. The co-evolution of labor markets and family relations can be explained by both the attractions and the constraints of free markets. The current shift toward a new social policy aimed at increasing fertility is presented as an example of how expanding market relations and the uncertainty to which they give rise in personal life cause demands for state intervention. The logic seems remarkably similar to that of the current banking crisis, where the liberation of financial markets from traditional constraints and the progressive commodification of money have ultimately issued in irresistible pressures on the state to step in and restore the social commons of stable expectations and mutual confidence. In both cases, and perhaps generally, capitalism seems to imply a need for a public power capable of creating substitutes for social relations invaded by market relations and as a consequence losing their capacity to perform some of their previous functions.
Topic:
Government, Markets, Political Economy, and Political Theory
Political Geography:
Germany