Minimum Wages and their Alternatives: A Critical Assessment

Do minimum wages reduce in-work poverty and wage inequality? Or can alternative policies do better? Germany suffers from high unemployment among low-skilled workers and rising wage dispersion at the lower end of the wage distribution. We analyse the impact on employment, wage inequality, public expenditure, and incomes of poor households of three different policy options currently being discussed in Germany: a statutory minimum wage, a combination of minimum wages and wage subsidies, and pure wage subsidies to low-paid workers. In doing so, we distinguish between perfectly competitive and monopsonistic labour markets. We find that a minimum wage of EUR 7.50 would cost between 410,000 and 840,000 low-paid jobs, increasing the fiscal burden, while only moderately raising the income of poor households. With pure wage subsidies, the government can always ensure more favourable employment effects. Combining a minimum wage with a wage subsidy turns out to be extremely costly and inferior to wage subsidies in all respects.     

Comptes Rendus Book Reviews

This article follows the efforts of white settlers to impose cotton as an export crop in Natal and Zululand. Touted as a commodity capable of remaking land and life in the region in the 1850s, the 1860s, and again in the 1910s and 1920s, cotton never achieved more than marginal status in the region's agricultural economy. Its story is one of historical amnesia: although faith in the region's cotton prospects dipped following each spectacular failure, it was routinely resurrected once previous failures had been accounted for, or memories of them had faded.

Two crucial issues are at the centre of this episodic history. First, I explore the logistics of planned expansion, and the reasons for the repeated collapse of cotton-growing schemes. Second, I unravel the side effects of these difficult and disappointing efforts and argue that, despite repeated failure, cotton facilitated important structural changes to the region's agricultural, political and economic landscape.     

Transnational police building: critical lessons from Timor-Leste and Solomon Islands

In this paper we begin by defining and examining the concept of police building. Its historical precedents and contemporary forms are briefly reviewed, showing a variety of motives and agendas for this kind of institution building. We argue that police building has been a relatively neglected dimension of nation- and state-building exercises, despite its importance to functions of pacification and restoration of law and order. The emerging literature on international police reform and capacity building tends to adopt a narrow institutionalist and universalistic approach that does not take sufficient account of the politics of police building. This politics is multilayered and varies from the formal to the informal. Using two case studies focusing on events in 2006 in Timor-Leste and Solomon Islands, the reasons for the fragility of many current police-building projects are considered. In both cases, we argue, police capacity builders paid insufficient attention to the political architecture and milieu of public safety.     

ETA: From secret army to social movement – the post‐Franco schism of the Basque nationalist movement

Under the Franco dictatorship, post‐Civil War generations of Basques grew up in a climate of physical violence and symbolic repression. Through the imposition of controls on all manifestations of Basque cultural and linguistic expression, the Spanish state transformed even the simplest of actions into defiant symbols of Basque identity. Rejecting, as ineffectual, attempts by the existing Basque Nationalist Party (PNV) to defend Basque culture, the more militant members of the PNV's youth organization attempted to stimulate a radical ethnic movement through a new organization, Euskadi ‘ta Askatasuna [Basque Homeland and Freedom (ETA)]. From its founding in 1959, ETA's principal goals have been the achievement of Basque independence and the revival of Basque culture and language. Its principal strategy has remained armed resistance to Spanish rule. To date, ETA has been responsible for approximately 600 deaths. In this article, we focus on the strategic and organizational evolution of ETA from secret army to social movement in the post‐Franco era. In particular, we seek to clarify the role that violence plays in the symbolic conflict of Basque/Spanish collective identities and to identify how the democratization process has influenced the strategies and tactics adopted by ETA as well as by those political organizations which have emerged from ETA and its numerous factions.     

Economic voting in Portuguese municipal elections

This paper analyses the impact of economic conditions on Portuguese municipal electoral outcomes. We use two extensive datasets to estimate an economic voting model which accounts for the possibility that different levels of government have different levels of responsibility for economic outcomes and for clarity of government responsibility. The empirical results indicate that the performance of the national economy is important especially if local governments are of the same party as the central government. The municipal situation is also relevant particularly in scenarios of greater clarity of national and sub-national government responsibility.     

The Portuguese 2005 legislative election: Return to the left

According to the ‘decline of parliaments’ thesis that dominates the literature, the executive branch has increased its powers vis-à-vis the legislature. However, at the same time most studies indicate that the parliaments in the Nordic region are on average stronger than their counterparts in central and southern European countries. This article examines the validity of the ‘decline of parliaments’ thesis in the context of Finland, a country where recent constitutional reforms have strengthened parliamentarism by reducing the powers of the president and empowering the government and the parliament. Analysing the constitutional balance of power between state organs, the interaction between the government and the opposition, and the ability of the parliament to hold the cabinet accountable, this article argues that despite its stronger constitutional position, the Eduskunta faces considerable difficulties in controlling the government.     

Europeanisation and territorial representation in Italy

This article aims to examine how, and to what extent, the process of Europeanisation has affected the reshaping of territorial representation in Italy. To explore this research question, it was considered how European Cohesion Policy and structural funds exercise a potential influence over the key dimensions of representation by providing regions with the opportunity to strengthen their roles as both ‘actors’ and ‘arenas’ of representation. Empirical research conducted through interviews and the analysis of documents in all twenty Italian regions revealed how each region has reacted to structural funds in a distinctive way due to different internal factors, such as the legacy of pre-existing policy styles and political structures, and the attitudes of the political/administrative elite. The article discusses this point in detail by focusing on the changes that occurred (or did not occur) at the regional level in light of the aforementioned dimensions of representation.     

The materialist/post‐materialist value dimension as a party cleavage in the Nordic countries

A growing political polarisation on ethnic integration policy is characteristic of current discussions in Dutch politics. The preferences of Dutch citizens, by contrast, remain fairly stable over time. Thus, polarised politics in the Netherlands is assumed to grow apart from the preferences of ordinary citizens, leading to a gap between politics and society. The present article describes and compares trends in societal and political polarisation on ethnic integration policy in the Netherlands between 1994 and 2006. Three mechanisms are explored that explain a discrepancy between trends in political and societal polarisation: (a) parties' responsiveness to political elites, (b) mean partisan representation, and (c) issue salience. Analyses of data from Dutch election studies and party manifestos reveal the existence of a discrepancy in trends. Political polarisation appears to be associated with trends in mean partisan polarisation and in issue salience, and not with trends in political elite polarisation.     

Issue salience in regional and national party manifestos in the UK

The study reveals the salience of particular issues in the manifestos of the main British parties for the 1997 and 2003 UK general elections, as well as the 2003 Scottish and Welsh elections, using the method introduced by the Comparative Manifesto Project (CMP) and a modified list of issue categories to reflect the division of government competences between the central and regional governments. Ideological and social base of a party, as well as the delimitation of government competences, are found to be important determinants of issue salience. A more consensual institutional design of the regional government in Scotland and Wales seems to have conditioned larger differences among the issue profiles of parties competing in regional elections, in comparison with general elections. With the institutionalisation of devolution, however, we observe an increase in the similarity of the issue profiles of the same parties in general and in Scottish and Welsh elections, as well as among different parties competing in the same regional elections.