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Bismarck versus Beveridge: a comparison of social security systems in Europe

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  • Anja Rohwer
  • Anja Hülsewig

Abstract

In a European comparison of the financing systems for social security, considerable differences between countries exist. But the systems can be broadly classified, and in Europe two basic systems can be distinguished. The Bismarck system, which is based primarily on social insurance contributions, and the tax-based Beveridge system. In the Bismarck system no redistribution between different earnings groups results while this is the case in the Beveridge system. In Europe there is an evident trend that the two systems are converging.

Suggested Citation

  • Anja Rohwer & Anja Hülsewig, 2008. "Bismarck versus Beveridge: a comparison of social security systems in Europe," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(21), pages 26-29, November.
    • Handle: RePEc:ces:ifosdt:v:61:y:2008:i:21:p:26-29
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    References listed on IDEAS

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    1. Cremer, Helmuth & Pestieau, Pierre, 2003. "Social insurance competition between Bismarck and Beveridge," Journal of Urban Economics, Elsevier, vol. 54(1), pages 181-196, July.
    2. Kolmar, Martin, 2007. "Beveridge versus Bismarck public-pension systems in integrated markets," Regional Science and Urban Economics, Elsevier, vol. 37(6), pages 649-669, November.
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    2. Stöver, Jana & Vöpel, Henning & Manouguian, Maral-Sonja & Verheyen, Frank, 2010. "Qualität und Effizienz der Gesundheitsversorgung im internationalen Vergleich," HWWI Policy Papers 55, Hamburg Institute of International Economics (HWWI).

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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