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From Conflict to Compromise: The importance of mediation in Swedish work stoppages 1907-1927

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  • Enflo, Kerstin
  • Karlsson, Tobias

Abstract

Institutions for prevention and resolution of labor market conflicts were introduced all over the world in the early twentieth century. In this paper we analyze the impact of mediation on compromise outcomes in Swedish labor market conflicts, using a dataset of geo-coded strikes and lockouts from 1907 to 1927. Causality is identified by using the distance from the mediator’s residence to the conflict as an instrument. Despite their limited authority and access to economic resources, the presence of mediators in a conflict resulted in about 30 per cent higher probability of a compromise outcome. Mediation was more likely to work as intended in settings where conflicting parties recognized each other and struggled over a prize that could be divided. The results suggest that mediation could have paved the way for a cooperative atmosphere in local labor markets. At the national level such an atmosphere was clearly manifested in the General Agreement in 1938 and with the rise of the Swedish Model.

Suggested Citation

  • Enflo, Kerstin & Karlsson, Tobias, 2018. "From Conflict to Compromise: The importance of mediation in Swedish work stoppages 1907-1927," CEPR Discussion Papers 12586, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12586
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    Cited by:

    1. Jason Lennard, 2023. "Sticky wages and the Great Depression: evidence from the United Kingdom," European Review of Economic History, European Historical Economics Society, vol. 27(2), pages 196-222.
    2. Enflo, Kerstin & Molinder, Jakob & Karlsson, Tobias, 2019. "More Power to the People: Electricity Adoption, Technological Change and Social Conflict," CEPR Discussion Papers 13986, C.E.P.R. Discussion Papers.
    3. Enflo, Kerstin & Molinder, Jakob & Karlsson, Tobias, 2018. "The Power Resource Theory Revisited: What Explains the Decline in Industrial Conflicts in Sweden?," CEPR Discussion Papers 13130, C.E.P.R. Discussion Papers.
    4. Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2022. "Social democracy and the decline of strikes," Explorations in Economic History, Elsevier, vol. 83(C).
    5. Kristina Hrehova & Stefan Domonkos, 2022. "Proximity to Help Matters: The Effect of Access to Centers of Legal Aid on Bankruptcy Rates," CERGE-EI Working Papers wp728, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Michele Campolieti, 2023. "An event study analysis of the effects of collective bargaining legislation on strike outcomes," LABOUR, CEIS, vol. 37(2), pages 242-279, June.

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    More about this item

    Keywords

    Industrial relations; Strikes; Mediation; Labour market institutions;
    All these keywords.

    JEL classification:

    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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