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Welfare States in Hard Times


  • Donatella Gatti
  • Andrew Glyn


Welfare states have been subject to a host of conflicting pressures from high unemployment, rising income inequality, population aging, tax competition, rising budget deficits and debts, slow growth, and fears that economic dynamism was being stifled by excessive taxes and benefit levels. Nevertheless total spending on welfare has edged up in many countries and cuts in rates of benefit have generally been fairly modest. The generosity of the welfare state has an enormous influence on poverty and income inequality and still appears to be popular in most of Europe. Suggestions that society would benefit from reduced working time must reckon with the fact that it is paid work which generates the tax revenue required to fund welfare spending. Copyright 2006, Oxford University Press.

Suggested Citation

  • Donatella Gatti & Andrew Glyn, 2006. "Welfare States in Hard Times," Oxford Review of Economic Policy, Oxford University Press, vol. 22(3), pages 301-312, Autumn.
  • Handle: RePEc:oup:oxford:v:22:y:2006:i:3:p:301-312

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    References listed on IDEAS

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    Cited by:

    1. Gustav A. Horn & Katharina Dröge & Simon Sturn & Till van Treeck & Rudolf Zwiener, 2009. "Von der Finanzkrise zur Weltwirtschaftskrise (III)," IMK Report 41-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    2. Donatella Gatti, 2009. "Macroeconomic effects of ownership structure in OECD countries ," Industrial and Corporate Change, Oxford University Press, vol. 18(5), pages 901-928, October.
    3. Riccardo Fiorentini & Guido Montani, 2012. "The New Global Political Economy," Books, Edward Elgar Publishing, number 14443.

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