World Politics

When and why have employers supported the development of institutions of social insurance that provide benefits to workers during various employment-related risks? The analysis developed in this article challenges the dominant explanations of welfare state development, which are premised on the assumption that business opposes social insurance. The article examines the conditions under which self-interested, profit-maximizing firms support the introduction of a new social policy, and it specifies the most significant variables explaining the variation in employers' social policy preferences. The model is tested in three political episodes of welfare state development in France and Germany, using policy documents submitted by various employers' associations to bureaucratic and parliamentary commissions.