An Empirical Analysis of the Dynamics of the Welfare State: The Case of Benefit Morale -super-*
AbstractDoes the supply of a welfare state create its own demand? Many economic scholars studying welfare arrangements refer to Say's law and insinuate a self-destructive welfare state. However, little is known about the empirical validity of these assumptions and hypotheses. We study the dynamic effect of different welfare arrangements on benefit fraud. In particular, we analyze the impact of the welfare state on the respective social norm, i.e. benefit morale. It turns out that a high level of public social expenditures and a high unemployment rate are associated with a small positive (or no) immediate impact on benefit morale, which however is (partly) crowded out by adverse medium and long run effects. In contrast to earlier studies we do not find that younger birth cohorts have lower values of benefit morale. Copyright � 2010 Blackwell Publishing Ltd.
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Volume (Year): 63 (2010)
Issue (Month): 1 (02)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962
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- Friedrich Heinemann, 2009.
"Economic Crisis and Morale,"
Working Papers CEB
09-046.RS, ULB -- Universite Libre de Bruxelles.
- Giacomo Corneo, 2011. "Work Norms and the Welfare State," CESifo Working Paper Series 3665, CESifo Group Munich.
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