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Welfare State Adjustment to New Social Risks in the Post-crisis Scenario. A Review with Focus on the Social Investment Perspective. WWWforEurope Working Paper No. 89

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  • Thomas Leoni

Abstract

The European welfare states have undergone a significant amount of change over the last decades. In light of the unresolved tensions resulting from changed macroeconomic conditions, the emergence of new social risks as well as from the consequences of the Great Recession and its aftershocks, more adjustments are needed. The present policy paper investigates the current outlook on welfare state change, retracing the socio-economic drivers of this change and the salient steps that were undertaken to reform welfare states in the last decades. Since the outbreak of the crisis, calls to adopt a social investment perspective on welfare state reform intensified, both in the academic field and at the EU policy level. Ample space is therefore devoted to the discussion of this perspective, its conceptual background, ambiguities and applications. For a number of reasons, social investment seems the most appropriate approach to frame the objectives that contemporary welfare states have to pursue and to devise a consistent set of policies. The objections which have been moved against the social investment perspective have however to be taken seriously. This concerns the conceptual framework on which the social investment idea is based, but in particular its policy implementation and the relationship between its three central pillars: activation, human capital development and social inclusion.

Suggested Citation

  • Thomas Leoni, 2015. "Welfare State Adjustment to New Social Risks in the Post-crisis Scenario. A Review with Focus on the Social Investment Perspective. WWWforEurope Working Paper No. 89," WIFO Studies, WIFO, number 57899, Juni.
  • Handle: RePEc:wfo:wstudy:57899
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    References listed on IDEAS

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    2. Christine Mayrhuber & Matthias Firgo & Hans Pitlik & Alois Guger & Ewald Walterskirchen, 2018. "Sozialstaat und Standortqualität," WIFO Studies, WIFO, number 61006, Juni.
    3. N. N., 2017. "WIFO-Monatsberichte, Heft 12/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(12), December.
    4. Karl Aiginger, 2016. "Deficits and Strengths in Austrian Competitiveness," FIW Policy Brief series 029, FIW.
    5. Christine Mayrhuber & Julia Bock-Schappelwein, 2018. "Digitalisierung und soziale Sicherheit," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(12), pages 891-897, December.
    6. Karl Aiginger, 2018. "Neue Anforderungen an Industrie- und Strukturpolitik," WIFO Working Papers 553, WIFO.
    7. Karl Aiginger, 2016. "This Can Still Be Europe's Century," WIFO Working Papers 522, WIFO.
    8. Karl Aiginger, 2017. "This Can Still be Europe's Century," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 2(3), pages 173-182.
    9. Karl Aiginger & Marcus Scheiblecker, 2016. "Österreich 2025 – Eine Agenda für mehr Dynamik, sozialen Ausgleich und ökologische Nachhaltigkeit. Fortschrittsbericht," WIFO Studies, WIFO, number 58885, February.
    10. Karl Aiginger, 2017. "Wettbewerbsfähigkeit: vom "gefährlichen" Schlagwort zum Zukunftskompass. Die ökonomische Forschung und der Beitrag des WIFO," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(12), pages 947-953, December.

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