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Globalisation and the Future of the Welfare State

Author

Listed:
  • Yu-Fu Chen
  • Catia Montagna
  • Holger Görg
  • Dennis Görlich
  • Hassan Molana
  • Yama Temouri

Abstract

This paper reconsiders the link between welfare state provision, globalisation and competitiveness empirically. We challenge the conventional wisdom that welfare states, large-scale public provision of social insurance and progressive systems of redistributive taxation are incompatible with economic globalisation. The paper look at an important aspect of globalisation, namely the activities of multinational companies, and investigate whether social expenditure, which arguably contributes to a stable and more attractive social and economic environment for the operations of businesses, hinders or attracts inward investors.

Suggested Citation

  • Yu-Fu Chen & Catia Montagna & Holger Görg & Dennis Görlich & Hassan Molana & Yama Temouri, 2015. "Globalisation and the Future of the Welfare State," Working Papers id:7911, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:7911
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    References listed on IDEAS

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    Cited by:

    1. Javier Bilbao-Ubillos, 2021. "The Crisis of the European Social Model in the Adverse Environment of Globalization," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(3), pages 478-500, September.
    2. Gülsün Gürkan Yay & Tolga Aksoy, 2018. "Globalization and the welfare state," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(3), pages 1015-1040, May.
    3. Deniz Sevinc & Edgar Mata Flores & Simon Collinson, 2020. "Are there inequality spillovers? Evidence through a modified inequality measure and European dynamics of inequality," Working Papers 545, ECINEQ, Society for the Study of Economic Inequality.
    4. Marcelo Santos & Marta Simões, 2021. "Globalisation, Welfare Models and Social Expenditure in OECD Countries," Open Economies Review, Springer, vol. 32(5), pages 1063-1088, November.
    5. Friedl, Andreas & Görlich, Dennis & Horn, Sebastian & Krieger-Boden, Christiane & Lücke, Matthias, 2015. "How to deal with inequality: Welfare system challenges and European responses," Kiel Policy Brief 85, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    welfare state; globalisation; economies of scale; social expenditure; social protection; social expenditure; compensation hypothesis; Germany; Sweden;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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