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Analyzing inequalities: a multifaceted perspective of OECD welfare regimes during the Great Recession and the Pandemic

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  • Fariborz Aref

    (University of Oklahoma)

Abstract

This study evaluates the impact of the Great Recession and the COVID-19 pandemic on income, labor, and health disparities within OECD welfare regimes. The findings reveal a significant increase in income inequality within the Liberal model (LM) during the pandemic. Employment rates decreased in the LM and Corporatist models (CM), while remaining stable in the Mediterranean (MM) and Post-communist models (PM). The pandemic intensified these trends, underscoring the pivotal role of GDP in shaping employment trajectories. Unemployment rates escalated in both the CM and PM. Across all welfare regimes, health disparities, including life expectancy, deteriorated during the pandemic; the PM saw notable declines, and the LM experienced a considerable reduction. Additionally, infant mortality rates rose across all models. The study identifies GDP as a critical factor influencing both health and economic outcomes. These findings highlight the need for policy updates in various welfare regimes to address global challenges and evolving social dynamics. The study also underscores the necessity of adjusting welfare regime classifications to stay relevant amidst continual global transformations, maintaining their efficacy in a rapidly evolving global context.

Suggested Citation

  • Fariborz Aref, 2024. "Analyzing inequalities: a multifaceted perspective of OECD welfare regimes during the Great Recession and the Pandemic," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 71(2), pages 401-420, June.
    • Handle: RePEc:spr:inrvec:v:71:y:2024:i:2:d:10.1007_s12232-024-00448-9
    DOI: 10.1007/s12232-024-00448-9
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    More about this item

    Keywords

    Pandemic; GDP; Welfare regimes; Generalized estimating equations;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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