How Institutions Evolve: The Political Economy Of Skills In Germany, Britain, The United States, And Japan (cambridge Studies In Comparative Politics)

How Institutions Evolve is widely considered one of the most important recent contributions to the institutionalist literature. It received the Woodrow Wilson award, the most prestigious book award of the American Political Science Association. Thelen is concerned with the interplay between continuity and change in institutions. Focusing on vocational training, she demonstrates the persistence of country specific patterns of vocational training through periods of dramatic political change. In an extended treatment of the German case she demonstrates how, in spite of this continuity, the function of vocational training in Germany has dramatically changed over the years. While created against the opposition of organized labor at the end of the 19th century, it gradually changed into an importan pillar of union power in Germany's political economy. Her argument is directed mainly against the 'punctuated equilibrium' approach to institutional change, which views institutions as stable until a major 'critical juncture' changes them entirely. Though 'vocational training' may not strike most readers as the most exciting of subjects, Thelen's focused theoretical lense, as well as the historical depth of her treatment make this book a good, at times fascinating, read. It is sure to become required reading for all students and scholars of political institutions. Cover......Page 1 Half-title......Page 3 Series-title......Page 5 Title......Page 7 Copyright......Page 8 Dedication......Page 9 Contents......Page 11 Preface......Page 13 1 The Political Economy of Skills in Comparative-Historical Perspective......Page 21 Skills and Skill Formation......Page 28 Economists on Skills......Page 31 Beyond Becker......Page 33 Back to Politics......Page 35 Issues of Credible Commitment in Training: Some Problems and Their Solutions......Page 37 Issues of Collective Action in Training: Some Problems and Their Solutions......Page 39 The Argument in Brief......Page 40 Theories of Institutional Genesis and Change......Page 43 The Origins and Evolution of Institutions: Lessons from the Present Study......Page 51 Outline for the Book......Page 57 2 The Evolution of Skill Formation in Germany......Page 59 The Importance of the Artisanal Economy in the Evolution of Skill Formation in Germany......Page 62 Implications for Labor......Page 67 Implications for Industry......Page 73 Strategies of the Large Machine and Metalworking Companies......Page 75 Political Coalitions and the Evolution of the System......Page 83 Organized Labor’s Position in the Debates of the 1920s......Page 86 The Position of the Machine and Metalworking Industry......Page 92 The Drive toward Standardization......Page 95 The Political Coalition against Reform......Page 99 Dinta......Page 103 The Failure of the Reforms......Page 106 Voluntary Cooperation as an Alternative to Legislative Reform......Page 108 3 The Evolution of Skill Formation in Britain......Page 112 State Policy and the Fate of the British Artisanate......Page 113 Implications for Labor......Page 117 Implications for Industry......Page 120 Union and Employer Strategies in the Metalworking/Engineering Industry......Page 124 Apprenticeship in Britain before World War I......Page 127 Apprenticeship after the Lockout......Page 129 Reform Efforts before World War I......Page 138 Strategies of Large Metalworking Companies......Page 142 Union Strategies with Respect to Apprenticeship......Page 150 The Impact of War and Its Aftermath......Page 153 British Training on the Eve of World War II......Page 161 Comparisons and Conclusions......Page 165 4 The Evolution of Skill Formation in Japan and the United States......Page 168 The Evolution of Skill Formation in Japan......Page 169 The Role of the State and the Fate of the Japanese Artisanate......Page 171 Implications for Labor......Page 176 Implications for Industry......Page 178 Strategies of the Large Metalworking Companies......Page 183 The Evolution of the Japanese Management System......Page 186 Germany and Japan Compared......Page 194 The Evolution of Skill Formation in the United States......Page 197 Skill Formation in Early Industrial America......Page 198 Implications for Labor......Page 201 Implications for Industry......Page 204 Union and Employer Strategies in the Metalworking Industry before World War I......Page 206 The Wisconsin Model......Page 216 The Corporation School Movement in the United States......Page 218 The Politics of Training during and after World War I......Page 222 Comparisons and Conclusions......Page 232 5 Evolution and Change in the German System of Vocational Training......Page 235 The Evolution of the System under National Socialism......Page 239 Training and Skills under National Socialism......Page 241 The Politics of Vocational Training under National Socialism......Page 247 Political Struggles over the Control of Vocational Training......Page 254 The Impact of National Socialism on Vocational Training......Page 257 Vocational Training in Postwar Germany......Page 260 The Occupation......Page 262 Reconstruction......Page 271 The 1969 Vocational Training Act......Page 279 Developments after 1969......Page 284 Contemporary Developments in the German Training System: Erosion through Drift?......Page 289 Cross-National Comparisons: The Origins of Divergent Skill Regimes......Page 298 Coalitions and the Further Evolution of the System......Page 301 Youth and Apprenticeship......Page 303 Institutional Complementarities......Page 305 Institutional Evolution and Change......Page 312 Bibliography......Page 317 Index......Page 343 Cover 1 Half-title 3 Series-title 5 Title 7 Copyright 8 Dedication 9 Contents 11 Preface 13 1 The Political Economy of Skills in Comparative-Historical Perspective 21 Skills and Skill Formation 28 Economists on Skills 31 Beyond Becker 33 Back to Politics 35 Issues of Credible Commitment in Training: Some Problems and Their Solutions 37 Issues of Collective Action in Training: Some Problems and Their Solutions 39 The Argument in Brief 40 Theories of Institutional Genesis and Change 43 The Origins and Evolution of Institutions: Lessons from the Present Study 51 Outline for the Book 57 2 The Evolution of Skill Formation in Germany 59 The Importance of the Artisanal Economy in the Evolution of Skill Formation in Germany 62 Implications for Labor 67 Implications for Industry 73 Strategies of the Large Machine and Metalworking Companies 75 Political Coalitions and the Evolution of the System 83 Organized Labor’s Position in the Debates of the 1920s 86 The Position of the Machine and Metalworking Industry 92 The Drive toward Standardization 95 The Political Coalition against Reform 99 Dinta 103 The Failure of the Reforms 106 Voluntary Cooperation as an Alternative to Legislative Reform 108 3 The Evolution of Skill Formation in Britain 112 State Policy and the Fate of the British Artisanate 113 Implications for Labor 117 Implications for Industry 120 Union and Employer Strategies in the Metalworking/Engineering Industry 124 Apprenticeship in Britain before World War I 127 Apprenticeship after the Lockout 129 Reform Efforts before World War I 138 Strategies of Large Metalworking Companies 142 Union Strategies with Respect to Apprenticeship 150 The Impact of War and Its Aftermath 153 British Training on the Eve of World War II 161 Comparisons and Conclusions 165 4 The Evolution of Skill Formation in Japan and the United States 168 The Evolution of Skill Formation in Japan 169 The Role of the State and the Fate of the Japanese Artisanate 171 Implications for Labor 176 Implications for Industry 178 Strategies of the Large Metalworking Companies 183 The Evolution of the Japanese Management System 186 Germany and Japan Compared 194 The Evolution of Skill Formation in the United States 197 Skill Formation in Early Industrial America 198 Implications for Labor 201 Implications for Industry 204 Union and Employer Strategies in the Metalworking Industry before World War I 206 The Wisconsin Model 216 The Corporation School Movement in the United States 218 The Politics of Training during and after World War I 222 Comparisons and Conclusions 232 5 Evolution and Change in the German System of Vocational Training 235 The Evolution of the System under National Socialism 239 Training and Skills under National Socialism 241 The Politics of Vocational Training under National Socialism 247 Political Struggles over the Control of Vocational Training 254 The Impact of National Socialism on Vocational Training 257 Vocational Training in Postwar Germany 260 The Occupation 262 Reconstruction 271 The 1969 Vocational Training Act 279 Developments after 1969 284 Contemporary Developments in the German Training System: Erosion through Drift? 289 6 Conclusions, Empirical and Theoretical 298 Cross-National Comparisons: The Origins of Divergent Skill Regimes 298 Coalitions and the Further Evolution of the System 301 Youth and Apprenticeship 303 Institutional Complementarities 305 Institutional Evolution and Change 312 Bibliography 317 Index 343 The institutional arrangements governing skill formation are widely seen as a key element in the institutional constellations defining 'varieties of capitalism' across the developed democracies. This book explores the origins and evolution of such institutions in four countries - Germany, Britain, the United States and Japan. It traces cross-national differences in contemporary training regimes back to the nineteenth century, and specifically to the character of the political settlement achieved among employers in skill-intensive industries, artisans, and early trade unions. The book also tracks evolution and change in training institutions over a century of development, uncovering important continuities through putative 'break points' in history. Crucially, it also provides insights into modes of institutional change that are incremental but cumulatively transformative. The study underscores the limits of the most prominent approaches to institutional change, and identifies the political processes through which the form and functions of institutions can be radically reconfigured over time. Kathleen Thelen explains the historical origins of important cross-national differences in four countries (Germany, Britain, the United States and Japan), and also provides a theory of institutional change over time. The latter is considered a frontier issue in institutionalist analysis, of which there are several varieties emerging from economics, political science, and sociology. Thelen's study contributes to the literature on the political economy of the developed democracies that focuses on different institutional arrangements defining distinctive models of capitalism. Using case studies from Germany, Britain, the United States and Japan, this text traces cross-national differences in contemporary training regimes back to the political settlement achieved among employers in skill-intensive industries, artisans and early trade unions in the 19th century The past two decades have witnessed an enormous outpouring of literature on the putative effects of "globalization" on the political economies of the advanced industrial countries.