De-Linking Labor

Abstract

This article evaluates the thesis that the relationship between national labor movements and social democratic political parties has become `delinked' in the past two decades as a result of globalization. As globalization has undermined the political relevance of unions, social democratic parties have pursued independent, and more conservative, policies and have courted a diversity of other interest groups. This thesis is tested using a pooled time-series multiple regression analysis of 16 advanced industrialized countries spanning the period 1950-95. Globalization - measured both in terms of a country's general `openness' to the world economy and specifically in terms of international trade and direct investment abroad - is found to be positively related both to the widening success gap between unions and social democratic parties and to the growing policy conservatism of social democratic parties.