Union structure, bounded solidarity and support for redistribution: Implications for building a welfare state

Abstract

This study unveils the effects of union structure - national, industrial and enterprise unionism - on the solidarity and redistribution preferences of workers. We argue that labor unions have varied scope and levels of solidarity as well as redistribution preferences because solidarity is not naturally given but tends to be cultivated by labor unions. In order to sustain commitment to egalitarian wages and redistributive social policies, a spirit of solidarity must be instilled in the minds of members, especially more privileged workers. Our analysis finds that countries with encompassing unions at national and industry levels have higher levels of overall support for government intervention to reduce income inequality than countries with enterprise unionism. It suggests that welfare state building is not just a function of relative power between labor and capital; union structure and preference formation matter as well.