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Risks at Work: The Demand and Supply Sides of Government Redistribution

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  • Thomas Cusack
  • Torben Iversen
  • Philipp Rehm
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    Abstract

    To comprehend how the welfare state adjusts to economic shocks it is important to get a handle on both the genesis of popular preferences and the institutional incentives for governments to respond to these preferences. This paper attempts to do both, using a general theoretical framework and detailed data at both the individual and national levels. In a first step, we focus on how risk exposure and income are related to preferences for redistribution. To test our hypotheses, we extract detailed risk-exposure measures from labour-force surveys and marry them to cross-national opinion survey data. Results from analysis of these data attest to the great importance of risks within the labour market in shaping popular preferences for redistributive efforts by governments. In a second step, we turn our attention to the supply side of government redistribution. Institutions, we argue, mediate governments' reactions to redistributional demands following economic shocks. Using time-series cross-country data, we demonstrate how national training systems, and electoral institutions, as well as partisanship, shape government responses. 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: 365-389

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    Handle: RePEc:oup:oxford:v:22:y:2006:i:3:p:365-389

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

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    Cited by:
    1. Hacker, Jacob S. & Huber, Gregory Alain & Nichols, Austin & Rehm, Philipp & Schlesinger, Mark & Valletta, Robert G. & Craig, Stuart, 2012. "The Economic Security Index: A New Measure for Research and Policy Analysis," IZA Discussion Papers 6946, Institute for the Study of Labor (IZA).
    2. Richard G. Anderson & Charles S. Gascon, 2008. "Offshoring, economic insecurity, and the demand for social insurance," Working Papers 2008-003, Federal Reserve Bank of St. Louis.
    3. repec:hal:wpaper:halshs-00586260 is not listed on IDEAS
    4. Baptiste Françon & Michaël Zemmour, 2013. "What shapes the generosity of short- and long-term benefits? A political economy approach," Documents de travail du Centre d'Economie de la Sorbonne 13027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Guillaud, Elvire & Marx, Paul, 2013. "Preferences for Employment Protection and the Insider-Outsider Divide," IZA Discussion Papers 7569, Institute for the Study of Labor (IZA).
    6. Protte, Benjamin, 2012. "Does Fleet Street shape politics? Estimating the Effect of Newspaper Coverage about Globalization on the Support for Unemployment Insurance," Working Papers 12-19, University of Mannheim, Department of Economics.
    7. Andreas Georgiadis & Alan Manning, 2012. "Spend it like Beckham? Inequality and redistribution in the UK, 1983–2004," Public Choice, Springer, vol. 151(3), pages 537-563, June.
    8. Luebker, Malte, 2012. "Income inequality, redistribution and poverty contrasting rational choice and behavioural perspectives," ILO Working Papers 471001, International Labour Organization.
    9. M. Grazia Pittau & Roberto Zelli, 2013. "Has the attitude of US citizens towards redistribution changed over time?," DSS Empirical Economics and Econometrics Working Papers Series 2013/3, Centre for Empirical Economics and Econometrics, Department of Statistics, "Sapienza" University of Rome.
    10. Baptiste Françon, 2013. "Who turned their back on the SPD? Electoral disaffection with the German Social Democratic Party and the Hartz reforms," Documents de travail du Centre d'Economie de la Sorbonne 14019, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    11. Lskavyan, Vahe, 2014. "Donor–recipient ideological differences and economic aid," Economics Letters, Elsevier, vol. 123(3), pages 345-347.
    12. Manow, Philip & Emmenegger, Patrick, 2012. "Religion and the gender vote gap: Women's changed political preferences from the 1970s to 2010," Working papers of the ZeS 01/2012, University of Bremen, Centre for Social Policy Research (ZeS).
    13. Schmid, Günther & Modrack, Simone, 2008. "Employment dynamics in Germany: Lessons to be learned from the Hartz reforms," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2008-102, Social Science Research Center Berlin (WZB).
    14. Baptiste Françon, 2013. "Who turned their back on the SPD? Electoral disaffection with the German Social Democratic Party and the Hartz reforms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00973879, HAL.
    15. Elvire Guillaud, 2013. "Preferences for redistribution: an empirical analysis over 33 countries," Journal of Economic Inequality, Springer, vol. 11(1), pages 57-78, March.

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