Are European welfare states sustainable?
AbstractEuropean welfare states face serious financial difficulties caused by persistent high levels of unemployment and demographic ageing. Serious organisational problems are accompanied by inefficiency. Fiercer international competition and closer European integration put pressure on social policy in the EU member states, and creates competition between national welfare states. Sustainable European welfare states in general and maintainable social security systems in particular require fundamental reform. In this paper a plan for a common EU-wide safety-net is presented. The current proposal differs considerably from previous proposals involving the establishment of a basic income, wage subsidies, an earned income tax credit or workfare. Simulations show that the proposal is both effective and efficient.
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Bibliographic InfoPaper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 03C28.
Date of creation: 2003
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-EEC-2003-09-14 (European Economics)
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