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Social Norms and Welfare State Dynamics

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Author Info
Lindbeck, Assar () (The Research Institute of Industrial Economics)
Nyberg, Sten () (Stockholm University)
Weibull, Jörgen W. () (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.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 585.

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Length: 14 pages
Date of creation: 15 Nov 2002
Date of revision:
Publication status: Published in Journal of the European Economic Association 1, Papers and Proceedings, 2003, pages 533-542.
Handle: RePEc:hhs:iuiwop:0585

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
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Related research
Keywords: Welfare State; Social Norms; Social Insurance;

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Find related papers by JEL classification:
D19 - Microeconomics - - Household Behavior - - - Other
D64 - Microeconomics - - Welfare Economics - - - Altruism
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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References listed on IDEAS
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)
    Other versions:
  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).
    Other versions:
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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!]
    Other versions:
  2. Weibull, Jörgen & Villa, Edgar, 2005. "Crime, punishment and social norms," Working Paper Series in Economics and Finance 610, Stockholm School of Economics. [Downloadable!]
  3. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. 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!]
  5. Torben Andersen, 2008. "The Scandinavian model—prospects and challenges," International Tax and Public Finance, Springer, vol. 15(1), pages 45-66, February. [Downloadable!] (restricted)
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