The Decline of the Welfare State: Demography and Globalization
AbstractIn The Decline of the Welfare State, Assaf Razin and Efraim Sadka use a political economy framework to analyze the effects of aging populations, migration, and globalization on the deteriorating system of financing welfare state benefits as we know them. Their timely analysis, supported by a unified theoretical framework and empirical findings, demonstrates how the combined forces of demographic change and globalization will make it impossible for the welfare state to maintain itself on its present scale. In much of the developed world, the proportion of the population aged 60 and over is expected to rise dramatically over the coming years -- from 35 percent in 2000 to a projected 66 percent in 2050 in the European Union and from 27 percent to 47 percent in the United States -- which may necessitate higher tax burdens and greater public debt to maintain national pension systems at current levels. Low-skill migration produces additional strains on welfare-state financing because such migrants typically receive benefits that exceed what they pay in taxes. Higher capital taxation, which could potentially be used to finance welfare benefits, is made unlikely by international tax competition brought about by globalization of the capital market. Applying a political economy model and drawing on empirical data from the EU and the United States, the authors draw an unconventional and provocative conclusion from these developments. They argue that the political pressure from both aging and migrant populations indirectly generates political processes that favor trimming rather than expanding the welfare state. The combined pressures of aging, migration, and globalization will shift the balance of political power and generate public support from the majority of the voting population for cutting back traditional welfare state benefits.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoThis book is provided by The MIT Press in its series MIT Press Books with number 0262182440 and published in 2005.
Contact details of provider:
Web page: http://mitpress.mit.edu
political economy; welfare; globalization; demography;
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Torben Andersen & Allan Sørensen, 2011.
"Globalisation squeezes the public sector—is it so obvious?,"
International Tax and Public Finance,
Springer, vol. 18(4), pages 369-382, August.
- Torben M. Andersen & Allan Sørensen, 2008. "Globalisation squeezes the public sector - is it so obvious?," Economics Working Papers 2008-08, School of Economics and Management, University of Aarhus.
- Keuschnigg, Christian & Ribi, Evelyn, 2007.
"Outsourcing, Unemployment and Welfare Policy,"
CEPR Discussion Papers
6605, C.E.P.R. Discussion Papers.
- Christian Keuschnigg & Evelyn Ribi, 2007. "Outsourcing, Unemployment and Welfare Policy," University of St. Gallen Department of Economics working paper series 2007 2007-41, Department of Economics, University of St. Gallen.
- Christian Keuschnigg & Evelyn Ribi, 2008. "Outsourcing, Unemployment and Welfare Policy," CESifo Working Paper Series 2452, CESifo Group Munich.
- Christian Keuschnigg & Evelyn Ribi, 2007. "Outsourcing, Unemployment and Welfare Policy," Working Papers 0720, Oxford University Centre for Business Taxation.
- Torben M. Andersen & Allan Sørensen, 2012.
"Globalization, Tax Distortions, and Public-Sector Retrenchment,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 114(2), pages 409-439, 06.
- Torben M. Andersen & Allan Sørensen, 2010. "Globalization, tax distortions and public sector retrenchment," Economics Working Papers 2010-09, School of Economics and Management, University of Aarhus.
- Chang Woon Nam & Doina Maria Radulescu, 2005.
"Effects of Corporate Tax Reforms on SMEs’ Investment Decisions under the Particular Consideration of Inflation,"
CESifo Working Paper Series
1478, CESifo Group Munich.
- Chang Nam & Doina Radulescu, 2007. "Effects of Corporate Tax Reforms on SMEs’ Investment Decisions under the Particular Consideration of Inflation," Small Business Economics, Springer, vol. 29(1), pages 101-118, June.
- Simonovits, Andras, 2007. "Can population ageing imply a smaller welfare state?," European Journal of Political Economy, Elsevier, vol. 23(2), pages 534-541, June.
- Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153, CPB Netherlands Bureau for Economic Policy Analysis.
- Massimo Baldini & Luca Beltrametti, 2005.
"Alternative approaches to Long Term Care financing. Distributive implications and sustainability for Italy,"
Center for the Analysis of Public Policies (CAPP)
0009, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
- Massimo Baldini & Luca Beltrametti, 2006. "Alternative Approaches to Long-term Care Financing. Distributive Implications and Sustainability for Italy," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(V), pages 117-121.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jake Furbush).
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.