Explaining Historical Employer Coordination: Evidence from Germany

What explains historical cross-national variation in the degree of employer coordination and related industrial institutions within advanced industrialized states? Explaining such variation is important because such outcomes are related to contemporary patterns in social policy and inequality. Recent literature emphasizes the historical importance of electoral systems for the development of such firm coordination. I present an alternative conceptualization of the outcome and a theory; existing theories cannot explain the important role of early coordinated institutions of repression among firms. I argue that the redistributive threat posed by workers explains the emergence of collective repression and that extreme threats induced collective collaboration with workers. Detailed historical evidence from the early twentieth century and the inter-war period in Germany is used to support the theory.