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returns to otherwise similar capital assets will decrease the capital class solidarity.Hence capital class cohesiveness monotonically deteriorates with increases of ILM levels. Symmetrically we can infer that with a unit decrease of ILM level,labor class solidarity will deteriorate and capital class solidarity will improve. How will labor mobility levels be related to politics?High levels of ILM are associated with high levels of labor cohesiveness.Through the mechanism of labor mobility,labor owners acquire a stake in the success of labor-benefiting policies since they can reap gains from such policies by exercising their ability to move to more productive industries.6 Therefore with high labor mobility,support for labor-benefiting policies from labor owners will be high In similar logic,high ILM levels will lead to deteriorating cohesiveness among capital owners,as some capital owners can make economic gains relative to other capital owners by simply investing their assets in certain industries.Hence with high labor mobility,the general level of support among capital owners for the capital-benefiting policies will be low. The model therefore reveals an unambiguous positive(negative)relationship between ILM levels and labor(capital)class solidarity.And it is straightforward to infer that levels of ILM bear directly on the degree of public support for the partisan political agenda.We argue that in order to push forward the partisan political agendas, governments will engage in partisan manipulation of labor mobility levels.In specific, Left-leaning governments will prefer to have relatively high levels of ILM to maintain a 6 When levels of ILM are high,all policies are either labor-benefiting or non-labor-benefiting.Even if some policies are purported to benefit only parts of the labor force,the labor mobility mechanism will however spread the benefit to the whole labor force since,1)high ILM ensures that high productivity workers can move into those policy-favored industries,2)the absolute differences between relative wage changes will be small with high levels of ILM,so that wages of those industries that are not policy-favored will also rise in sync with those that are policy-favored.returns to otherwise similar capital assets will decrease the capital class solidarity. Hence capital class cohesiveness monotonically deteriorates with increases of ILM levels. Symmetrically we can infer that with a unit decrease of ILM level, labor class solidarity will deteriorate and capital class solidarity will improve. How will labor mobility levels be related to politics? High levels of ILM are associated with high levels of labor cohesiveness. Through the mechanism of labor mobility, labor owners acquire a stake in the success of labor-benefiting policies since they can reap gains from such policies by exercising their ability to move to more productive industries. 6 Therefore with high labor mobility, support for labor-benefiting policies from labor owners will be high. In similar logic, high ILM levels will lead to deteriorating cohesiveness among capital owners, as some capital owners can make economic gains relative to other capital owners by simply investing their assets in certain industries. Hence with high labor mobility, the general level of support among capital owners for the capital-benefiting policies will be low. The model therefore reveals an unambiguous positive (negative) relationship between ILM levels and labor (capital) class solidarity. And it is straightforward to infer that levels of ILM bear directly on the degree of public support for the partisan political agenda. We argue that in order to push forward the partisan political agendas, governments will engage in partisan manipulation of labor mobility levels. In specific, Left-leaning governments will prefer to have relatively high levels of ILM to maintain a 6 When levels of ILM are high, all policies are either labor-benefiting or non-labor-benefiting. Even if some policies are purported to benefit only parts of the labor force, the labor mobility mechanism will however spread the benefit to the whole labor force since, 1) high ILM ensures that high productivity workers can move into those policy-favored industries; 2) the absolute differences between relative wage changes will be small with high levels of ILM, so that wages of those industries that are not policy-favored will also rise in sync with those that are policy-favored
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