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The Role of European Welfare States in Explaining Resources Deprivation

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Author Info
Muffels, Ruud
Fouarge, Didier

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

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

References listed on IDEAS
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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. [Downloadable!] (restricted)
  2. 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.
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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. 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. [Downloadable!] (restricted)
  2. repec:ese:iserwp: is not listed on IDEAS
  3. Bettina Isengard & Thorsten Schneider, 2006. "The euro and its perception in the German population," Discussion Papers 011, University of Flensburg, International Institute of Management. [Downloadable!]
  4. Christopher T. Whelan & Bertrand Maître, 2007. "The 'Europeanisation' of Reference Groups: A reconsideration Using EU-SILC," Papers WP200, Economic and Social Research Institute (ESRI). [Downloadable!]
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