Studies in Comparative International Development

, Volume 45, Issue 3, pp 281–310 | Cite as

Rethinking the Iberian Transformations: How Democratization Scenarios Shaped Labor Market Outcomes

Article

Abstract

This article examines how dissimilar democratization scenarios in two historically important cases helped to shape a major societal outcome, that of unemployment levels. With an empirical focus on the neighboring countries of the Iberian Peninsula, the paper argues that Portugal's relative success and Spain's persistent failures in the provision of employment cannot be fully explained by the focus of some analysts on comparative labor costs, and that the Iberian countries' employment levels also rest on a set of factors connected in sometimes complex ways with the two societies' very different paths from authoritarianism to democracy in the 1970s. Factors emphasized include the degree of incorporation of women into the labor force, the availability of adequate financing for small and medium enterprises—and the impact of national financial systems and state policies on that intermediary outcome—and the extent to which the two countries' welfare states are employment friendly. Central to this article's argument is the claim that the divergence between these Third Wave pioneers in their democratization scenarios accounts for the dissimilar penetration into the Iberian cases of another global wave of the late twentieth century, that of market-centric economic liberalization.

Keywords

Democratization Unemployment Welfare-state Portugal Spain 

References

  1. Aguilar P. Memory and amnesia: the role of the Spanish civil war in the transition to democracy. New York: Berghahn Books; 2002.Google Scholar
  2. Asensio Menchero M. El Proceso de la Reforma del Sector Publico en el Sur de Europa: Estudio Comparativo de Espana y Portugal. Madrid: Instituto Juan March; 2001.Google Scholar
  3. Astudillo Ruiz J. Without unions but socialist: the Spanish socialist party and its divorce from its union confederation (1982–1996). Polit Soc. 2001;29(2):273–96.CrossRefGoogle Scholar
  4. Baizan P. The impact of labour market status on second and higher-order births. In: Esping-Andersen G, editor. Family formation and family dilemmas in contemporary Europe. Bilbao: Fundacion BBVA; 2007. p. 93–127.Google Scholar
  5. Barreto A et al. A Situacao Social en Portugal, 1960–1999, vol. II. Lisboa: Imprensa de Ciencias Sociais; 2000.Google Scholar
  6. Bermeo N. The revolution within the revolution. Princeton: Princeton University Press; 1986.Google Scholar
  7. Bermeo N. Redemocratization and transition elections: a comparison of Spain and Portugal. Comp Polit. 1987;19(2):213–30.CrossRefGoogle Scholar
  8. Bermeo N. The power of the people CEACS Working Paper 1997/97. Madrid: Instituto Juan March; 1997.Google Scholar
  9. Bermeo N. Learning from the Portuguese experience: some quick conclusions about some long processes. In: Costa Pinto A, editor. Modern Portugal. Palo Alto: The Society for the Promotion of Science and Scholarship; 1998. p. 270–4.Google Scholar
  10. Bermeo N. Conclusion: unemployment, the New Europe and the old inequalities. In: Bermeo N, editor. Unemployment in the New Europe. Cambridge: Cambridge University Press; 2001. p. 329–54.CrossRefGoogle Scholar
  11. Blanchard O, Jimeno J. Structural unemployment: Spain versus Portugal. Am Econ Rev. 1995;85(2):212–8.Google Scholar
  12. Boix C. Political parties, growth and equality: conservative and social democratic strategies in the world economy. Cambridge: Cambridge University Press; 1998.Google Scholar
  13. Bover O, Garcia-Perea P, Portugal P. Labour market outliers: lessons from Portugal and Spain. Econ Policy. 2000;31:381–428.Google Scholar
  14. Braga de Macedo J. Portugal's European integration: the good student with a bad fiscal constitution (Royo S, Manuel PC, editors). S Eur Soc Polit. 2003;8:169–94.CrossRefGoogle Scholar
  15. Burgess K. Parties and unions in the new global economy. Pittsburgh: University of Pittsburgh Press; 2004.Google Scholar
  16. Cameron D. Unemployment, job creation, and economic and monetary union. In: Bermeo N, editor. Unemployment in the New Europe. Cambridge: Cambridge University Press; 2001. p. 7–51.CrossRefGoogle Scholar
  17. Carruthers BG. Knowledge and liquidity: institutional and cognitive foundations of the subprime crisis. In: Lounsbury M, Hirsch PM, editors. Markets on trial: the economic sociology of the U.S. financial crisis, Research in the Sociology of Organizations. Bingley, UK: Emerald Group Publishing Limited; 2010. p. 30.Google Scholar
  18. Chhibber P, Torcal M. Elite strategy, social cleavages, and party systems in a new democracy. Comp Polit Stud. 1997;30(1):27–54.CrossRefGoogle Scholar
  19. Constâncio V. The Portuguese economy: achievements and challenges. In: Franco F, editor. Challenges ahead for the Portuguese economy. 2008. p. 53–68.Google Scholar
  20. Costa Pinto A. Settling accounts with the past in a troubled transition to democracy: the Portuguese case. In: Barahona De Brito A et al., editors. The politics of memory: transitional justice in democratizing societies. Oxford: Oxford University Press; 2001. p. 65–91.Google Scholar
  21. Costa Pinto A. Authoritarian legacies, transitional justice and state crisis in Portugal’s democratization. Democratization. 2006;13(2):173–204.CrossRefGoogle Scholar
  22. De Sousa SB. O Estado e a Sociedade em Portugal (1974–1988). Porto: Edicoes Afrontamento; 1990.Google Scholar
  23. Diamond L, Plattner MF, editors. Economic reform and democracy. Baltimore: Johns Hopkins University Press; 1995.Google Scholar
  24. Dobbin F. Forging industrial policy: the United States, Britain and France in the railway age. Cambridge: Cambridge University Press; 1994.Google Scholar
  25. Durán Muñoz R. Contención y Transgresión: las Movilizaciones Sociales y el Estado en las Transiciones Española y Portuguesa. Madrid: Centro de Estudios Políticos y Constitucionales; 2000.Google Scholar
  26. Encarnacion O. Spanish politics: democracy after dictatorship. Cambridge: Polity Press; 2008.Google Scholar
  27. Esping-Andersen G. Budgets and semocracy: towards a welfare state in Spain and Portugal, 1960–1986. In: Budge I, McKay D, editors. Developing democracy. London: Sage; 1994. p. 112–27.Google Scholar
  28. Esping-Andersen G. Social foundations of postindustrial economies. Oxford: Oxford University Press; 1999.CrossRefGoogle Scholar
  29. Esping-Andersen G. Who is harmed by labor market regulations? In: Esping-Andersen G, Regini M, editors. Why deregulate labor markets? Oxford: Oxford University Press; 2000. p. 66–98.CrossRefGoogle Scholar
  30. Esping-Andersen G, Regini M, editors. Why deregulate labor markets? Oxford: Oxford University Press; 2000.Google Scholar
  31. Eurostat. Statistics on innovation in Europe. Luxembourg: Office of Official Publications of the European Communities; 2000.Google Scholar
  32. Eurostat. Economic portrait of the European union. Luxembourg: Office of Official Publications of the European Communities; 2001a.Google Scholar
  33. Eurostat. Enterprises in Europe: sixth report. Luxembourg: Office of Official Publications of the European Communities; 2001b.Google Scholar
  34. Eurostat (2009a), Employment Rates by Sex and Age, at NUTS levels 1 and 2 (%). Available at: http://epp.eurostat.ec.europa.eu. Accessed 7 March 2009)
  35. Eurostat (2009b). Harmonized unemployment rates (%) monthly data. Available at: http://epp.eurostat.europa.eu. Accessed 28 December 2009
  36. Ferreira V. Engendering Portugal: Social change, state politics, and women’s mobilization. In: Costa Pinto A, editor. Modern Portugal. Palo Alto: The Society for the Promotion of Science and Scholarship; 1998. p. 162–88.Google Scholar
  37. Fishman RM. Rethinking state and regime: Southern Europe's transition to democracy. World Polit. 1990a;42:422–40.CrossRefGoogle Scholar
  38. Fishman RM. Working-class organization and the return to democracy in Spain. Ithaca: Cornell University Press; 1990b.Google Scholar
  39. Fishman RM. Democracy’s voices: Social ties and the quality of public life in Spain. Ithaca: Cornell University Press; 2004.Google Scholar
  40. Fishman RM. On being a Weberian (after Spain's 11–14 March): notes on the continuing relevance of the methodological perspective proposed by Weber. In: McFalls L, editor. Max Weber's ‘objectivity’ reconsidered. Toronto: University of Toronto Press; 2007. p. 261–89.Google Scholar
  41. Fishman RM. Democratic practice after the revolution: the case of Portugal and Beyond. MS: University of Notre Dame; 2009.Google Scholar
  42. Fishman RM, Messina AM, editors. The year of the Euro: the cultural, social and political import of Europe's common currency. Notre Dame: University of Notre Dame Press; 2006.Google Scholar
  43. Fourcade-Gourinchas M. Political institutional structures and the rise of economics: a comparative study. Theory Soc. 2001;30(3):397–447.CrossRefGoogle Scholar
  44. Fourcade-Gourinchas M, Babb SL. The rebirth of the liberal creed: paths to neoliberalism in four countries. Am J Sociol. 2002;108(3):533–79.CrossRefGoogle Scholar
  45. Franco F, editor. Challenges Ahead for the Portuguese Economy. Lisboa: Imprena de Ciencias Sociais; 2008.Google Scholar
  46. Fukuyama F. Have we reached the end of history? Santa Monica: The Rand Corporation; 1989.Google Scholar
  47. Fukuyama F. The end of history and the last man. New York: Free Press; 1992.Google Scholar
  48. Glatzer M. Rigidity and flexibility: patterns of labour market policy change in Portugal and Spain, 1981–1996. In: Bermeo N, editor. Unemployment in Southern Europe: coping with the consequences. London: Frank Cass; 2000. p. 90–110.Google Scholar
  49. Guillen M. The rise of Spanish multinationals. Cambridge: Cambridge University Press; 2005.Google Scholar
  50. Guillen A, Alvarez S, Adão e Silva P. Redesigning the Spanish and Portuguese welfare states: the impact of accession into the European Union. In: Royo S, Manuel PC, editors. Spain and Portugal in the European Union: the first fifteen years. London: Routledge; 2003. p. 231–68.Google Scholar
  51. Gunther R. Spain: the very model of modern elite settlement. In: Higley J, Gunther R, editors. Elites and democratic consolidation in Latin America and Southern Europe. Cambridge: Cambridge University Press; 1992. p. 38–80.Google Scholar
  52. Gunther R, Sani G, Shabad G. Spain after Franco: the making of a competitive party system. Berkeley: University of California Press; 1986.Google Scholar
  53. Gunther R, Montero JR, Botella J. Democracy in modern Spain. New Haven: Yale University Press; 2004.Google Scholar
  54. Haggard S, Kaufman RR, editors. The politics of economic adjustment. Princeton: Princeton University Press; 1992.Google Scholar
  55. Haggard S, Kaufman RR. The political economy of democratic transitions. Princeton: Princeton University Press; 1995.Google Scholar
  56. Hagopian F. Democracy by undemocratic means? Elites, political pacts and regime transition in Brazil. Comp Polit Stud. 1990;23(2):147–70.CrossRefGoogle Scholar
  57. Hall PA, editor. The political power of economic ideas: Keynesianism across nations. Princeton: Princeton University Press; 1989.Google Scholar
  58. Hall PA, Lamont M, editors. Successful societies. Cambridge: Cambridge University Press; 2009.Google Scholar
  59. Heller P. The labor of development: workers and the transformation of capitalism in Kerala, India. Ithaca: Cornell University Press; 2000.Google Scholar
  60. Huber E, Stephens JD. Development and crisis of the welfare state. Chicago: University of Chicago Press; 2001.Google Scholar
  61. Hunter W. Eroding military influence in Brazil: politicians against soldiers. Chapel Hill: University of North Carolina Press; 1997.Google Scholar
  62. Jordana J. Reconsidering union membership in Spain, 1977–1994: halting decline in a context of democratic consolidation. Ind Relat J. 1996;27(3):211–24.CrossRefGoogle Scholar
  63. Karl TL. Dilemmas of democratization in Latin America. Comp Polit. 1990;23(1):1–21.CrossRefGoogle Scholar
  64. Karl TL, Schmitter PC. Modes of transition in Latin America, Southern and Eastern Europe. Int Soc Sci J. 1991;43(2):269–84.Google Scholar
  65. Lago I. Partidos, votantes y cultura politica: los efectos de la precariedad en la dinamica electoral. Soc Utop: Rev Cienc Soc. 2007;29:451–61.Google Scholar
  66. Lains P. Historia da Caixa Geral de Depositos, 1876–1910: Politica e Financas do Liberalismo Portugues. Lisboa: Imprensa de Ciencias Sociais; 2002.Google Scholar
  67. Lains P. Historia da Caixa Geral de Depositos 1910–1974: Politica, Financas e Economia na Republica e no Estado Novo. Lisboa: Imprensa de Ciencias Sociais; 2008.Google Scholar
  68. Linz JJ. The breakdown of democratic regimes: crisis, breakdown and reequilibration. Baltimore: Johns Hopkins University Press; 1978.Google Scholar
  69. Linz JJ, Stepan A. Problems of democratic transition and consolidation: Southern Europe, South America and post-communist Europe. Baltimore: Johns Hopkins University Press; 1996.Google Scholar
  70. Linz J et al. Informe Sociologico sobre el Cambio Politico en Espana, 1975–1981. Madrid: Fundacion FOESSA; 1981.Google Scholar
  71. Lopez Lopez J. Un Lado Oculto de la Flexibilidad Salarial: El Incremento de la Judicializacion. Albacete: Bomarzo; 2008.Google Scholar
  72. Lukauskas AJ. Regulating finance: the political economy of Spanish financial policy from franco to democracy. Ann Arbor: University of Michigan Press; 1997.Google Scholar
  73. Maravall JM. Politics and policy: economic reforms in Southern Europe. In: Bresser-Pereira LC, Maravall JM, Przeworski A, editors. Economic reforms in new democracies: a social-democratic approach. Cambridge: Cambridge University Press; 1993. p. 77–131.Google Scholar
  74. Mateus A. Economia Portuguesa. Lisboa: Verbo; 1998.Google Scholar
  75. Maxwell K. The making of Portuguese democracy. Cambridge: Cambridge University Press; 1995.CrossRefGoogle Scholar
  76. Morlino L. Democracy between consolidation and crisis: parties, groups and citizens in Southern Europe. Oxford: Oxford University Press; 1998.Google Scholar
  77. Navarro V. Bienestar insuficiente, democracia incompleta. Barcelona: Anagrama; 2002.Google Scholar
  78. OECD. OECD Historical Statistics 1970–1999. Paris: OECD; 2000.CrossRefGoogle Scholar
  79. Ortiz L. Not the right job but a secure one: over-education and temporary employment in France, Italy and Spain. Work, Employ Soc. 2010;24(1):1–17.CrossRefGoogle Scholar
  80. Palacios Cerezales D. O Poder Caiu na Rua. Lisboa: Imprensa de Ciencias Sociais; 2003.Google Scholar
  81. Perez S. Banking on privilge: the politics of Spanish financial reform. Ithaca: Cornell University Press; 1997.Google Scholar
  82. Polavieja J. Estables y Precarios: desregulación laboral y estratificación social en España. Madrid: Centro de Investigaciones Sociológicas; 2003.Google Scholar
  83. Ragin C. The comparative method: beyond qualitative and quantitative strategies. Berkeley: University of California Press; 1989.Google Scholar
  84. Rona-Tas A, Hiss S. The role of ratings in the subprime mortgage crisis: the art of corporate and the science of consumer credit rating. In: Lounsbury M, Hirsch PM, editors. Markets on trial: the economic sociology of the U.S. financial crisis, Research in the Sociology of Organizations. Bingley, UK: Emerald Group Publishing Limited; 2010. p. 30.Google Scholar
  85. Royo S. From social democracy to neolibearlism: The consequences of party hegemony in Spain, 1982–9696. New York: St. Martin's Press; 2000.Google Scholar
  86. Royo S. Varieties of capitalism in Spain: Remaking the Spanish economy for the new century. New York: Palgrave Macmillan; 2008.Google Scholar
  87. Royo S, Manuel PC, editors. Spain and Portugal in the European Union: the first fifteen years. London: Frank Cass; 2003.Google Scholar
  88. Rueschemeyer D, Stephens EH, Stephens J. Capitalist development and democracy. Chicago: Chicago University Press; 1992.Google Scholar
  89. Salgado de Matos L. The Portuguese political system and the EC. In: Silva Lopes J, editor. Portugal and EC membership evaluated. London: Pinter; 1993. p. 157–72.Google Scholar
  90. Schmitter P. Liberation by Golpe. Armed Forces Soc. 1975;2(1):5–33.CrossRefGoogle Scholar
  91. Silva Lopes J (2003). The role of the state in the labour market: Its impact on employment and wages in Portugal as compared to Spain. In: Royo S, Manuel PC (editors). Spain and Portugal in the European UnionGoogle Scholar
  92. Silva M et al. Memorias de Economistas. Lisboa: Exame; 2006.Google Scholar
  93. Simmons BA, Dobbin F, Garrett G, editors. The global diffusion of markets and democracy. Cambridge: Cambridge University Press; 2008.Google Scholar
  94. Skocpol T. States and social revolutions. Cambridge: Cambridge University Press; 1979.Google Scholar
  95. Snyder R. Politics after neoliberalism: reregulation in Mexico. Cambridge: Cambridge University Press; 2001.CrossRefGoogle Scholar
  96. Stallings B. Finance for development: Latin America in comparative perspective. Washington: Brookings Institution Press; 2006.Google Scholar
  97. Stepan A. Paths toward redemocratization: theoretical and comparative considerations. In: O’Donnell G, Schmitter PC, Whitehead L, editors. Transitions from authoritarian rule: comparative perspectives. Baltimore: Johns Hopkins University Press; 1986. p. 64–84.Google Scholar
  98. Stoleroff A. Unemployment and trade union strength in Portugal. In: Bermeo N, editor. Unemployment in the New Europe. Cambridge: Cambridge University Press; 2001. p. 173–202.CrossRefGoogle Scholar
  99. Swedberg R. The structure of confidence and the collapse of Lehman brothers. In: Lounsbury M, Hirsch PM, editors. Markets on trial: the economic sociology of the U.S. financial crisis, Research in the Sociology of Organizations. Bingley, UK: Emerald Group Publishing Limited; 2010. p. 30.Google Scholar
  100. Valenzuela JS. Democratic consolidation in post-transitional settings: notion, process, and facilitating conditions. In: Mainwaring S, O'Donnell G, Valenzuela JS, editors. Issues in democratic consolidation: the new South American democracies in comparative perspective. Notre Dame: University of Notre Dame Press; 1992. p. 57–104.Google Scholar
  101. Villaverde Cabral M, Vala J, Freire A. Desigualdades Sociais e Percepcoes de Justica. Lisboa: Imprensa de Ciencias Sociais; 2003.Google Scholar
  102. Weir M. Politics and jobs: the boundaries of employment policy in the United States. Princeton: Princeton University Press; 1992.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Kellogg InstituteUniversity of Notre DameNotre DameUSA

Personalised recommendations