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Social Norms and Welfare State Dynamics

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Author Info
Assar Lindbeck (Institute for International Economic Studies Stockholm University,)
Sten Nyberg (Stockholm University,)
Jörgen W. Weibull (Boston University,)

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Abstract

The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population share of beneficiaries is higher, then voters will choose less generous benefits than otherwise. We also discuss welfare-state dynamics when there is a time lag in the adjustment of the norm in response to changes in this population share, and show how a temporary shift in the unemployment rate may cause persistence in the number of beneficiaries. (JEL: Z13, D19, D64, H31) Copyright (c) 2003 The European Economic Association.

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Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 1 (2003)
Issue (Month): 2-3 (04/05)
Pages: 533-542
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Handle: RePEc:tpr:jeurec:v:1:y:2003:i:2-3:p:533-542

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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.:
  1. Michihiro Kandori, 2002. "The Erosion and Sustainability of Norms and Morale," Levine's Bibliography 506439000000000030, UCLA Department of Economics. [Downloadable!]
  2. Michihiro Kandori, 2002. "The Erosion and Sustainability of Norms and Morale," CIRJE F-Series CIRJE-F-169, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
  3. Besley, Timothy & Coate, Stephen, 1992. "Understanding welfare stigma: Taxpayer resentment and statistical discrimination," Journal of Public Economics, Elsevier, vol. 48(2), pages 165-183, July. [Downloadable!] (restricted)
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  4. Samuel Bowles & Herbert Gintis, 2000. "Reciprocity, Self-Interest and the Welfare State," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 33-53. [Downloadable!]
  5. Lindbeck, A. & Nyberg, S., 2001. "Raising Children to Work Hard: Altruism, Work Norms and Social Insurance," Research Institute of Industrial Economics Working Papers 557, Research Institute of Industrial Economics (IFN).
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Cited by:
(explanations, 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.)

  1. Halla, Martin & Lackner, Mario & Schneider, Friedrich, 2009. "An Empirical Analysis of the Dynamics of the Welfare State: The Case of Benefit Morale," IZA Discussion Papers 4165, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Aronsson, Thomas & Sjögren, Tomas, 2006. "Optimal Income Taxation and Social Norms in the Labor Market," UmeÃ¥ Economic Studies 672, Umeå University, Department of Economics. [Downloadable!]
  3. Torben Andersen, 2008. "The Scandinavian model—prospects and challenges," International Tax and Public Finance, Springer, vol. 15(1), pages 45-66, February. [Downloadable!] (restricted)
  4. Beatrix Brügger & Rafael Lalive & Josef Zweimüller, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Weibull, Jörgen & Villa, Edgar, 2005. "Crime, punishment and social norms," Working Paper Series in Economics and Finance 610, Stockholm School of Economics. [Downloadable!]
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