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Austerity or welfare state transformation? Examining the impact of economic crises on social regulation in Europe

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  • Yves Steinebach
  • Christoph Knill
  • Jacint Jordana

Abstract

This article provides an encompassing analysis of how economic crises affect social regulation. The analysis is based on an innovative dataset that covers policy output changes in 13 European countries over a period of 34 years (1980–2013) in the areas of pensions, unemployment, and child benefits. By performing a negative binomial regression analysis, we show that economic crises do matter for social policymaking. Our main empirical finding is that crises impinge on social regulation by opening a window of opportunity that facilitates the dismantling of social policy standards. Yet crisis‐induced policy dismantling is restricted to adjustments based on existing policy instruments. We do not find significant variation in policymaking patterns across different macroeconomic conditions for the more structural elements of social policy portfolios, such as the envisaged social policy targets or the policy instruments applied. This suggests that economic crises do not lead to a profound transformation of the welfare state but to austerity.

Suggested Citation

  • Yves Steinebach & Christoph Knill & Jacint Jordana, 2019. "Austerity or welfare state transformation? Examining the impact of economic crises on social regulation in Europe," Regulation & Governance, John Wiley & Sons, vol. 13(3), pages 301-320, September.
    • Handle: RePEc:wly:reggov:v:13:y:2019:i:3:p:301-320
    DOI: 10.1111/rego.12174
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    References listed on IDEAS

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    1. Pierson, Paul, 2000. "Increasing Returns, Path Dependence, and the Study of Politics," American Political Science Review, Cambridge University Press, vol. 94(2), pages 251-267, June.
    2. Burgoon, Brian, 2001. "Globalization and Welfare Compensation: Disentangling the Ties that Bind," International Organization, Cambridge University Press, vol. 55(3), pages 509-551, July.
    3. Alessandro Turrini & Gabor Koltay & Fabiana Pierini & Clarisse Goffard & Aron Kiss, 2015. "A decade of labour market reforms in the EU: insights from the LABREF database," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-33, December.
    4. Frank R. Baumgartner & Christian Breunig & Christoffer Green‐Pedersen & Bryan D. Jones & Peter B. Mortensen & Michiel Nuytemans & Stefaan Walgrave, 2009. "Punctuated Equilibrium in Comparative Perspective," American Journal of Political Science, John Wiley & Sons, vol. 53(3), pages 603-620, July.
    5. Jacint Jordana, 2014. "Multiple Crises and Policy Dismantling in Spain: Political Strategies and Distributive Implications," Political Studies Review, Political Studies Association, vol. 12(2), pages 224-238, May.
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    1. Christoph Knill & Yves Steinebach, 2022. "Crises as driver of policy accumulation: Regulatory change and ratcheting in German asylum policies between 1975 and 2019," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 603-617, April.

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