Institutions for prevention and resolution of industrial conflicts were introduced all over the world in the early twentieth century. We use a new dataset of geocoded strikes and lockouts to analyze the impact of mediation on conflict outcomes in Sweden for the period 1907–1927. Causality is identified by using the distance from the mediator’s place of residence to the conflict as an instrument. Despite the mediators’ limited authority we find that their involvement in a conflict resulted in about 30 percent higher probability of a compromise. The results add support to institutionalist accounts of the origins of the Swedish Model.
- labor market institutions; industrial relations; strikes; mediation; the Swedish Model