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The Role of European Welfare States in Explaining Resources Deprivation

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  • Muffels, Ruud
  • Fouarge, Didier

Abstract

In a previous paper in this journal (Headey et al., 2000) a comparison was made between three so-called ‘best cases’ of welfare regime types, the ‘Liberal’ US, ‘the ‘Corporatist’ Germany and the ‘Social-Democratic’ Netherlands. That paper was based on the ten-year datasets drawn from the national socio-economic panel studies. For this paper we use the unique comparative panel dataset of the European Community Household Panel. At the time of research, only three waves of data covering the 1994–1996 period were available. Instead of three countries representing three different welfare state types as in the earlier paper we cover twelve countries allowing us to distinguish a fourth Southern or Mediterranean welfare regime type and to compare the performance of the four regimes. Compared to the Headey’s et al. paper we focus on the comparative analysis of the level of deprivation and pay less attention to income poverty and inequality. Because we consider deprivation to be part of the concept of social exclusion (see also Atkinson et al., 2002) our results also provide evidence on how welfare regimes across the EU cope with social exclusion. The result of the three ‘bestcases’ study were that the Social-Democratic welfare state performed best on nearly all social and economic indicators that were applied. Looking in this paper on deprivation levels the results are different and it appears that the Social-Democratic welfare state is good in preventing income poverty but performs less well in equalising levels of deprivation. The results also show that the immature Southern welfare states perform worse with respect to preventing deprivation. Trying to explain levels of deprivation by estimating Tobit panel regressions it turned out that the impact of regime type remains significant though limited. Structural disparities between the countries and regimes in terms of economic welfare, the demographic structure, and the employment situation explain most of the variance across countries.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13299.

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Date of creation: 2003
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Handle: RePEc:pra:mprapa:13299

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Keywords: income; deprivation; poverty; welfare regimes; European Community Household Panel; US; Germany; Netherlands; panel data; panel regression; Tobit;

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References

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  1. Desai, Meghnad & Shah, Anup, 1988. "An Econometric Approach to the Measurement of Poverty," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 505-22, September.
  2. Bruce Headey & Robert Goodin & Ruud Muffels & Henk-Jan Dirven, 2000. "Is There a Trade-Off Between Economic Efficiency and a Generous Welfare State? A Comparison of Best Cases of `The Three Worlds of Welfare Capitalism’," Social Indicators Research, Springer, vol. 50(2), pages 115-157, May.
  3. Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-99, November.
  4. Muffels, Ruud & Fouarge, Didier, 2001. "Working Profiles and Employment Regimes in European Panel Perspective," MPRA Paper 13295, University Library of Munich, Germany.
  5. repec:cup:cbooks:9780521593861 is not listed on IDEAS
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Citations

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Cited by:
  1. Rojas, Mariano, 2011. "Poverty and psychological distress in Latin America," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 206-217, March.
  2. Maître, Bertrand & Whelan, Christopher T., 2009. "Poverty and Deprivation in Ireland in Comparative Perspective," Research Series, Economic and Social Research Institute (ESRI), number RS11.
  3. Maes, Marjan, 2008. "Poverty persistence among Belgian elderly: true or spurious?," ISER Working Paper Series 2008-24, Institute for Social and Economic Research.
  4. Caroline Dewilde, 2008. "Individual and institutional determinants of multidimensional poverty: A European comparison," Social Indicators Research, Springer, vol. 86(2), pages 233-256, April.
  5. Mario Lucchini & Jenny Assi, 2013. "Mapping Patterns of Multiple Deprivation and Well-Being using Self-Organizing Maps: An Application to Swiss Household Panel Data," Social Indicators Research, Springer, vol. 112(1), pages 129-149, May.
  6. Chau-kiu Cheung & Kwan-kwok Leung, 2012. "Social Mitigation of the Impact of Urban Renewal on Residents’ Morale," Social Indicators Research, Springer, vol. 106(3), pages 523-543, May.
  7. Cecilia Albert Verdú & María A. Davia Rodríguez, 2009. "Monetary poverty, education exclusion and material deprivation amongst youth in Spain," Alcamentos 0903, Universidad de Alcalá, Departamento de Economía..
  8. Christopher T. Whelan & Bertrand Maître, 2007. "The 'Europeanisation' of Reference Groups: A reconsideration Using EU-SILC," Papers WP200, Economic and Social Research Institute (ESRI).
  9. Whelan, Christopher T. & Nolan, Brian & Maitre, Bertrand, 2005. "Trends in Welfare for Vulnerable Groups, Ireland 1994-2001," Research Series, Economic and Social Research Institute (ESRI), number PRS56.
  10. Marjan, MAES, 2008. "Poverty persistence among Belgian elderly in the transition from work to retirement : an empirical analysis," Discussion Papers (ECON - Département des Sciences Economiques) 2008042, Université catholique de Louvain, Département des Sciences Economiques.
  11. Mark Visser & Maurice Gesthuizen & Peer Scheepers, 2014. "The Impact of Macro-Economic Circumstances and Social Protection Expenditure on Economic Deprivation in 25 European Countries, 2007–2011," Social Indicators Research, Springer, vol. 115(3), pages 1179-1203, February.
  12. Francesco Devicienti & Valentina Gualtieri & Mariacristina Rossi, 2011. "The persistence of income poverty and life-style deprivation: Evidence from Italy," Working Papers 229, ECINEQ, Society for the Study of Economic Inequality.
  13. Tim Krieger & Daniel Meierrieks, 2010. "Terrorism in the Worlds of Welfare Capitalism," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(6), pages 902-939, December.
  14. Chau-kiu Cheung & Kwok Leung, 2010. "Ways that Social Change Predicts Personal Quality of Life," Social Indicators Research, Springer, vol. 96(3), pages 459-477, May.
  15. Bettina Isengard & Thorsten Schneider, 2006. "The euro and its perception in the German population," Discussion Papers 011, University of Flensburg, International Institute of Management.
  16. Chau-kiu Cheung & Lih-rong Wang & Raymond Chan, 2013. "Differential Impacts of Stressors on Sense of Belonging," Social Indicators Research, Springer, vol. 113(1), pages 277-297, August.
  17. Bettina Isengard & Thorsten Schneider, 2007. "Attitudes Towards The Euro: An Empirical Study Based On The German Socio-Economic Panel (Soep)," Social Indicators Research, Springer, vol. 82(1), pages 35-56, May.
  18. Christopher Whelan & Bertrand Maître, 2006. "Comparing poverty and deprivation dynamics: Issues of reliability and validity," Journal of Economic Inequality, Springer, vol. 4(3), pages 303-323, December.
  19. Elena Bárcena-Martín & Ana I. Moro Egido, 2013. "Country differences in the gender effect on poverty in Europe," ThE Papers 13/02, Department of Economic Theory and Economic History of the University of Granada..

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