Explaining the Survival of the Swedish Welfare State: Maintaining Political Support Through Incremental Change
Despite challenges and doomsday predictions, the Nordic welfare states with high taxes and public expenditure are still with us. This paper describes strategic choices for policy makers of the welfare state and uses the case of Sweden to argue that the high tax welfare state has survived several challenges through a process of incremental change, where the welfare state is modified in order to maintain political support from voters who would otherwise favor cutbacks. This gradual adaptation leads to heterogeneous universality characterized by flexibility, freedom of choice, and financial solutions that involve both public and private funding. While such policies may increase inequality, they play a crucial role in maintaining political support for high taxes and expenditures. Compared to likely counterfactual scenarios, this gradual adaptation may be the political strategy that minimizes inequality in the long run.
Volume (Year): 32 (2008)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: |
Web page: http://www.fintp.hr/Email:
More information through EDIRC
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.:
- Hans-Werner Sinn, 2001.
"The New Systems Competition,"
CESifo Working Paper Series
623, CESifo Group Munich.
- Richard Disney, 2003. "Public Pension Reform in Europe: Policies, Prospects and Evaluation," The World Economy, Wiley Blackwell, vol. 26(10), pages 1425-1445, November.
- Hans-Werner Sinn, 1994.
"A Theory of the Welfare State,"
NBER Working Papers
4856, National Bureau of Economic Research, Inc.
- HINDRIKS, Jean & DE DONDER, Philippe, 2001.
"The politics of redistributive social insurance,"
CORE Discussion Papers
2001054, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean Hindriks & Philippe De Donder, 2001. "The Politics of Redistributive Social Insurance," Working Papers 444, Queen Mary University of London, School of Economics and Finance.
- DE DONDER, Philippe & HINDRIKS, Jean, . "The politics of redistributive social insurance," CORE Discussion Papers RP -1674, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- repec:cup:cbooks:9780521821759 is not listed on IDEAS
- Gouyette, Claudine & Pestieau, Pierre, 1999.
"Efficiency of the Welfare State,"
Wiley Blackwell, vol. 52(4), pages 537-53.
- Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000.
"Political sustainability and the design of social insurance,"
Journal of Public Economics,
Elsevier, vol. 75(3), pages 341-364, March.
- CASAMATTA, Georges & CREMER, Helmuth & PESTIEAU, Pierre, . "Political sustainability and the design of social insurance," CORE Discussion Papers RP -1449, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boadway, Robin, 2005. "Income tax reform for a globalized world: The case for a dual income tax," Journal of Asian Economics, Elsevier, vol. 16(6), pages 910-927, December.
- Karl Ove Aarbu & Thor Olav Thoresen, 1997. "The Norwegian Tax Reform; Distributional Effects and the High-income Response," Discussion Papers 207, Research Department of Statistics Norway.
- Robert W. Fogel, 1999. "Catching Up with the Economy," American Economic Review, American Economic Association, vol. 89(1), pages 1-21, March.
- Andreas Bergh, 2004. "The Universal Welfare State: Theory and the Case of Sweden," Political Studies, Political Studies Association, vol. 52, pages 745-766, December.
- Andreas Bergh, 2004. "On the Redistributive Effect of Upper Benefit Limits in Bismarckian Social Insurance," Finnish Economic Papers, Finnish Economic Association, vol. 17(2), pages 73-78, Autumn.
- Sinn, Hans-Werner, 1997.
"The selection principle and market failure in systems competition,"
Journal of Public Economics,
Elsevier, vol. 66(2), pages 247-274, November.
- Sinn, Hans-Werner, 1997. "The selection principle and market failure in systems competition," Munich Reprints in Economics 19854, University of Munich, Department of Economics.
- John Hall & Ian Preston, 1998. "Public and private choice in UK health insurance," IFS Working Papers W98/19, Institute for Fiscal Studies.
- Karlsson, Martin & Mayhew, Les & Plumb, Robert & Rickayzen, Ben, 2006. "Future costs for long-term care: Cost projections for long-term care for older people in the United Kingdom," Health Policy, Elsevier, vol. 75(2), pages 187-213, January.
- 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.
- Castles, Francis G., 2004. "The Future of the Welfare State: Crisis Myths and Crisis Realities," OUP Catalogue, Oxford University Press, number 9780199273928, March.
- Sylwester, Kevin, 2002. "Can education expenditures reduce income inequality?," Economics of Education Review, Elsevier, vol. 21(1), pages 43-52, February.
- Snower, Dennis J, 1993. "The Future of the Welfare State," Economic Journal, Royal Economic Society, vol. 103(418), pages 700-717, May.
- Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February.
- Michael F. Förster, 2000. "Trends and Driving Factors in Income Distribution and Poverty in the OECD Area," OECD Labour Market and Social Policy Occasional Papers 42, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:ipf:finteo:v:32:y:2008:i:3:p:233-254. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Fabris)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.