This book examines the transformation of contemporary social
democracy through the concept of 'third way' reforms. It proposes a
set of theories about the possibility for continuing social
democratic ideological adaptation, for ideologies to overcome
institutional constraints in triggering path-breaking innovations,
and for social democracy to bridge the insider-outsider divide.
Empirically, the book utilizes these theories to account for social
democratic welfare state and labor market reforms in nine OECD
countries after the end of the Golden Age. Based on the logic of
'public evils', the book proposes that the ideologically contested
nature of institutions provides incentives for institutional
innovation. Social democratic ideology shapes the fundamental
characteristics and content of the third way policy paradigm, and
the paradigm's practical implementation continues to be
path-dependent on historical institutional settings.
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