Advanced Search
MyIDEAS: Login to save this article or follow this journal

Welfare regimes and the incentives to work and get educated

Contents:

Author Info

  • Andr�s Rodr�guez-Pose
  • Vassilis Tselios

Abstract

This paper examines whether differences in welfare regimes shape the incentives to work and get educated. Using microeconomic data for more than 100 000 European individuals, we show that welfare regimes make a difference for wages and education. First, people-based and household-based effects (internal returns to education, and household wage and education externalities) generate socioeconomic incentives for people to get an education and work which are stronger in countries with the weakest welfare systems, that is, those with what is known as ‘residual’ welfare regimes (Greece, Italy, Spain and Portugal). Second, place-based effects and, more specifically, differences in regional wage per capita and educational endowment and in regional interpersonal income and educational inequality, also influence wages and education in different ways across welfare regimes. Place-based effects have the greatest impact in the Nordic social-democratic welfare systems. The results are robust to the inclusion of a large number of people-based and place-based controls. Keywords:  welfare regimes, wages, education, incentives, regions, EU

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.envplan.com/abstract.cgi?id=a44102
File Function: abstract
Download Restriction: Fulltext access restricted to subscribers, see http://www.envplan.co.uk/A.html for details

File URL: http://www.envplan.com/epa/fulltext/a44/a44102.pdf
File Function: main text
Download Restriction: Fulltext access restricted to subscribers, see http://www.envplan.co.uk/A.html for details

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 44 (2012)
Issue (Month): 1 (January)
Pages: 125-149

as in new window
Handle: RePEc:pio:envira:v:44:y:2012:i:1:p:125-149

Contact details of provider:
Web page: http://www.pion.co.uk

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Heinemann, Friedrich, 2007. "Is the Welfare State Self-destructive? A Study of Government Benefit Morale," ZEW Discussion Papers 07-029, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Kirby, Simon & Riley, Rebecca, 2008. "The external returns to education: UK evidence using repeated cross-sections," Labour Economics, Elsevier, vol. 15(4), pages 619-630, August.
  3. Andrés Rodríguez-Pose & Montserrat Vilalta-Bufi, 2004. "Education, Migration, and Job Ssatisfaction: the Regional Returns of Human Capital in the EU," Bruges European Economic Research Papers 1, European Economic Studies Department, College of Europe.
  4. David R. Howell & Miriam Rehm, 2009. "Unemployment compensation and high European unemployment: a reassessment with new benefit indicators," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 60-93, Spring.
  5. Andrés Rodríguez-Pose & Vassilis Tselios, 2008. "Education and income inequality in the regions of the European Union," LSE Research Online Documents on Economics 33188, London School of Economics and Political Science, LSE Library.
  6. Huffman, Sonya K. & Kilkenny, Maureen, 2007. "Regional Welfare Program and Labor Force Participation," Staff General Research Papers 12589, Iowa State University, Department of Economics.
  7. Andrés Rodríguez-Pose & Vassilis Tselios, 2010. "Returns to Migration, Education, and Externalities in the European Union," Working Papers 2010.25, Fondazione Eni Enrico Mattei.
  8. Alexandra Rillaers, 2001. "Education and income inequality: The role of a social protection system," Journal of Population Economics, Springer, vol. 14(3), pages 425-443.
  9. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
  10. Rodríguez-Pose, Andrés & Tselios, Vassilis, 2008. "Inequalities in Income and Education and Regional Economic Growth in Western Europe," Papers DYNREG34, Economic and Social Research Institute (ESRI).
  11. Saint-Paul, Gilles & Verdier, Thierry, 1993. "Education, democracy and growth," Journal of Development Economics, Elsevier, vol. 42(2), pages 399-407, December.
  12. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, 04.
  13. Bertola, Giuseppe, 1991. "Factor Shares and Savings In Endogenous Growth," CEPR Discussion Papers 576, C.E.P.R. Discussion Papers.
  14. Giordano Mion & Paolo Naticchioni, 2009. "The spatial sorting and matching of skills and firms," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 28-55, February.
  15. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
  16. Timothy J. Bartik, . "Spillover Effects of Welfare Reforms in State Labor Markets," Upjohn Working Papers and Journal Articles tjb2002jrs, W.E. Upjohn Institute for Employment Research.
  17. Bas Jacobs, 2008. "Is Prescott Right? Welfare State Policies and the Incentives to Work, Learn and Retire," CESifo Working Paper Series 2277, CESifo Group Munich.
  18. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Mapping the European regional educational distribution: Educational attainment and inequality," Working Papers 2007-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  19. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 157-200, 04.
  20. Andrés Rodríguez-Pose & Vassilis Tselios, 2012. "Individual Earnings and Educational Externalities in the European Union," Regional Studies, Taylor & Francis Journals, vol. 46(1), pages 39-57, February.
  21. Chris Hamnett, 2009. "Spatial Divisions of Welfare: The Geography of Welfare Benefit Expenditure and of Housing Benefit in Britain," Regional Studies, Taylor & Francis Journals, vol. 43(8), pages 1015-1033.
  22. Ronald Schettkat, 2003. "Are institutional rigidities at the root of European unemployment?," Cambridge Journal of Economics, Oxford University Press, vol. 27(6), pages 771-787, November.
  23. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005, September.
  24. Vassilis Tselios, 2008. "Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 403-430, 08.
  25. Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
  26. Francesca Bettio & Janneke Plantenga, 2004. "Comparing Care Regimes In Europe," Feminist Economics, Taylor & Francis Journals, vol. 10(1), pages 85-113.
  27. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall.
  28. Lindbeck, Assar, 1995. "Hazardous Welfare-State Dynamics," Working Paper Series 428, Research Institute of Industrial Economics.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tsatsos, Aristidis, 2011. "Working in Southern Europe in Times of Crisis – Myths and Demons," MPRA Paper 45237, University Library of Munich, Germany, revised Jul 2011.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:44:y:2012:i:1:p:125-149. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.