This article analyses different types of labour clauses in public procurement regulation that have been enacted in Germany, a coordinated market economy that has experienced a ‘neoliberal drift’ including the decline of the traditional governance of labour and contracting out. Based on an analysis of relevant regulations adopted by the 16 Germany federal states, the article corroborates insights into the prominent role of left parties advocating for labour clauses in public procurement on a much broader empirical foundation than previous research. It adds to scholarly knowledge by revealing that the relative comparative advantage of regions with lower wage levels inhibits labour clauses in federal political systems. It finds that centre-right parties are willing to stipulate certain labour clauses in order to protect small-and medium-sized enterprises, which are core parts of their electoral support base.
Social capital is often defined as consisting of trust and postmaterialist values on the one hand, and social networks on the other hand. This article examines how different governance modes such as networks, markets, and hierarchies are related to trust and postmaterialist values in 74 West German regions.A principle component analysis of 40 social capital indicators shows that trust and postmaterialist values do not solely combine with networks but also with preferences for markets and hierarchies. A cluster analysis identifies two dominant types of regional social capital in West German regions. These types are different from the well-known Italian patterns described by Robert Putnam in his seminal work. In the period 1995—2002, the annual economic growth in regions which have combined trust with preferences for strong markets and weak political networks was on average 1 percent higher than in regions with inverted preferences.
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