Employer organizations and the evolution of active labor market policy in Sweden and the United States

Abstract

This chapter examines the stances adopted by the major employer groups in two countries with very distinct political economies: Sweden and the United States. It presents the existing theoretical expectations about employer preferences and explains the logic of the case selection on that basis. The chapter also presents the American case, tracing the evolution of active labor market policy (ALMP) from the pre-World War II (WWII) period to the present and employer stances to it. There are several features of employer organization which might make them more amenable to the expansion of ALMP. Neither of the employer organizations were particularly keen on most aspects of ALMP prior to WWII. In the United States, the focus of attention is on three broad business representatives: the National Association of Manufacturers (NAM), the American Chamber of Commerce, and the Business Roundtable. The NAM was established in 1895 in the context of rising union activity.