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Reform Perspectives on Welfare State Models in Global Capitalism

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Author Info

  • Karl Aiginger

    (WIFO)

  • Alois Guger

    (WIFO)

  • Thomas Leoni

    (WIFO)

  • Ewald Walterskirchen

    (WIFO)

Abstract

The paper characterises a number of welfare state models in the tradition of Esping-Andersen, analysing the economic and social performance of these different welfare regimes on an encompassing empirical basis both in the long run and with respect to their adaptability to the challenges of the last decades. While the differences with regard to growth dynamics had been very small in the decades after World War II (1960–1990), growth rates as well as the employment and social policy records have diverged over the past 15 years. The best performances were found for the extremes: the Scandinavian model and the liberal Anglo-Saxon model, while the continental model produced low growth and increasing unemployment. The reforms primarily in the Scandinavian countries allow us to delineate elements of a "New Welfare State Architecture" which on the one hand upholds important characteristics of a European social model, but on the other hand allows welfare states to be competitive in the globalising economy. Such a European socio-economic model could redirect incentives in such a way that the welfare state is able to shift from a burden (increasing costs and lowering flexibility) to a productive force.

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Bibliographic Info

Paper provided by WIFO in its series WIFO Working Papers with number 303.

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Length: 41 pages
Date of creation: 16 Oct 2007
Date of revision:
Handle: RePEc:wfo:wpaper:y:2007:i:303

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Keywords: welfare state; social model; economic performance; reform policies;

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References

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  1. Peter Lindert & Gayle Allard, 2006. "EURO-PRODUCTIVITY AND EURO-JOBS SINCE THE 1960s: WHICH INSTITUTIONS REALLY MATTERED?," Working Papers 619, University of California, Davis, Department of Economics.
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Cited by:
  1. Herrmann, Peter & Tausch, Arno & Heshmati, Almas & Bajalan, Chemen S. J., 2008. "Efficiency and Effectiveness of Social Spending," IZA Discussion Papers 3482, Institute for the Study of Labor (IZA).
  2. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany.
  3. Farkas, Beáta, 2011. "A közép-kelet-európai piacgazdaságok fejlődési lehetőségei az Európai Unióban
    [The development opportunities for the Central-East European market economies within the European Union]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 412-429.
  4. TAUSCH, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Scien," MPRA Paper 9613, University Library of Munich, Germany.

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