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Social Norms and Welfare State Dynamics

Author

Listed:
  • Assar Lindbeck
  • Sten Nyberg
  • Jörg Weibull

Abstract

The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population share of beneficiaries is higher, then voters will choose less generous bene.ts than otherwise. We also discuss welfare-state dynamics when there is a time lag in the adjustment of the norm in response to changes in this population share, and show how a temporary shift in the unemployment rate may cause persistence in the number of beneficiaries.

Suggested Citation

  • Assar Lindbeck & Sten Nyberg & Jörg Weibull, 2003. "Social Norms and Welfare State Dynamics," CESifo Working Paper Series 931, CESifo.
    • Handle: RePEc:ces:ceswps:_931
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    File URL: https://www.cesifo.org/DocDL/cesifo_wp931.pdf
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    References listed on IDEAS

    as
    1. Besley, Timothy & Coate, Stephen, 1992. "Understanding welfare stigma: Taxpayer resentment and statistical discrimination," Journal of Public Economics, Elsevier, vol. 48(2), pages 165-183, July.
    2. 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.
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    Keywords

    welfare state; social norms; social insurance;

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