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Welfare States in Hard Times

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  • Donatella Gatti
  • Andrew Glyn

Abstract

Welfare states have been subject to a host of conflicting pressures from high unemployment, rising income inequality, population aging, tax competition, rising budget deficits and debts, slow growth, and fears that economic dynamism was being stifled by excessive taxes and benefit levels. Nevertheless total spending on welfare has edged up in many countries and cuts in rates of benefit have generally been fairly modest. The generosity of the welfare state has an enormous influence on poverty and income inequality and still appears to be popular in most of Europe. Suggestions that society would benefit from reduced working time must reckon with the fact that it is paid work which generates the tax revenue required to fund welfare spending. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 22 (2006)
Issue (Month): 3 (Autumn)
Pages: 301-312

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Handle: RePEc:oup:oxford:v:22:y:2006:i:3:p:301-312

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Web page: http://oxrep.oupjournals.org/

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Cited by:
  1. Gustav A. Horn & Katharina Dröge & Simon Sturn & Till van Treeck & Rudolf Zwiener, 2009. "Von der Finanzkrise zur Weltwirtschaftskrise (III)," IMK Report 41-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  2. Gatti, Donatella, 2008. "Macroeconomic Effects of Ownership Structure in OECD Countries," IZA Discussion Papers 3415, Institute for the Study of Labor (IZA).

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