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that the Depression's impact on the economic geography of both unions was
different, thereby generating a different pattern of demands. I begin this chapter
by rejecting these two alternatives.
The first section marshals empirical evidence to show that the systems of rep-
resentation yielded comparable levels of effective power for provincial leaders,
and that the impact of the Depression on these unions' economic geography
was indeed quite similar. On these grounds, the rest of the chapter proceeds in
three analytical steps. First, I analyze the key mechanisms in the argument: the
differences in the interplay between regional economic specialization, and the
mobility patterns in the aftermath of the Depression. Second, I show how these
differences shape key political actors' (most prominently employers' and sub-
national elites') preferences regarding the convenience of launching a central-
ized program of unemployment insurance. Finally, I trace the political process
linking these preferences to the actual decision on centralizing unemployment
insurance. The chapter closes by drawing out the main theoretical implications
of the analysis.
THE STATUS QUO AND THE DISTRIBUTIVE CONSEQUENCES
OF THE GREAT DEPRESSION
During the first three decades of the twentieth century Canadian and American
social welfare systems shared a common approach to the issue of unemploy-
ment, including a similar underlying philosophy and some failed attempts to
launch public insurance systems earlier in the century. Both countries proceeded
in the footsteps of the British Poor Laws. With some remarkable exceptions, the
worse off were left to be taken care of by charity, either organized by the local
administration or directly dispensed by private philanthropic organizations.
The ruling approach to indigents was that they did not constitute a public
policy issue. Those who were laid off were expected to fend for themselves
and search for whatever jobs were available. Only those lacking any possi-
ble opportunity (because of illness or age) were considered the target of the
relief provided normally by locally organized voluntary associations and only
exceptionally (civil war pensions) by the federal government (Skocpol
1992
). In
general, during the first fifteen years of the century public authorities were not
directly concerned with social issues. State/provincial and federal governments
refrained from direct intervention and only in exceptional circumstances did
they launch one-off programs of emergency assistance.
Demobilization after World War I changed the landscape. In Canada, the
issue of how to cope with the income needs of a large contingent of citizens
during their transition from war to work, and the influence of Beveridge's
ideas, increased the prospect of an insurance-based approach to the prob-
lem of unemployment. To cope with demobilization in Canada the Employ-
ment Service was established, collecting for the first time systematic informa-
tion about the labor force and reallocating workers throughout the country.
Moreover, Department of Labor officials recommended the adoption of an
