Employment Outcomes in the Welfare State
AbstractWe examine the implications of tax and subsidy policies for employment in the "three worlds of welfare", Anglo-Saxon, Continental European and Scandinavian. We argue that home production is key to a proper evaluation of the employment outcomes. Anglo-Saxon low-support policies encourage more overall market employment. Continental transfer polilcies encourage more home production in services with close substitutes at home. Scandinavian policies give incentives to move home production in social services to the market but discourage other service activity. We find support for our claims in sectoral employment data for five representative countries, United States, Britain, France, Italy and Sweden.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0856.
Date of creation: Feb 2008
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
welfare state; employment; social services; tax and subsidy; three worlds of welfare;
Other versions of this item:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-EEC-2008-06-07 (European Economics)
- NEP-HAP-2008-06-07 (Economics of Happiness)
- NEP-LAB-2008-06-07 (Labour Economics)
- NEP-LTV-2008-06-07 (Unemployment, Inequality & Poverty)
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