Enfranchisement and the welfare state: Institutional design of unemployment compensation

This paper examines the relationship between various political mechanisms and the variation in unemployment compensation programs (i.e., compulsory, voluntary, and assistance programs). I argue that the choice of a specific unemployment compensation program over others depends on the level of franchise extension. Using a multinomial logit analysis of 13 European countries from 1880 to 1945, I find that among other political mechanisms, franchise extension had the greatest impact on the likelihood of instituting unemployment compensation, controlling socio-economic factors. Greater enfranchisement is associated with a higher probability of choosing a compulsory program, but not a voluntary one.