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Reform Perspectives on Welfare State Models in Global Capitalism

Author

Listed:
  • Karl Aiginger

    (WIFO)

  • Alois Guger

    (WIFO)

  • Thomas Leoni

    (WIFO)

  • Ewald Walterskirchen

    (WIFO)

Abstract

The paper characterises a number of welfare state models in the tradition of Esping-Andersen, analysing the economic and social performance of these different welfare regimes on an encompassing empirical basis both in the long run and with respect to their adaptability to the challenges of the last decades. While the differences with regard to growth dynamics had been very small in the decades after World War II (1960–1990), growth rates as well as the employment and social policy records have diverged over the past 15 years. The best performances were found for the extremes: the Scandinavian model and the liberal Anglo-Saxon model, while the continental model produced low growth and increasing unemployment. The reforms primarily in the Scandinavian countries allow us to delineate elements of a "New Welfare State Architecture" which on the one hand upholds important characteristics of a European social model, but on the other hand allows welfare states to be competitive in the globalising economy. Such a European socio-economic model could redirect incentives in such a way that the welfare state is able to shift from a burden (increasing costs and lowering flexibility) to a productive force.

Suggested Citation

  • Karl Aiginger & Alois Guger & Thomas Leoni & Ewald Walterskirchen, 2007. "Reform Perspectives on Welfare State Models in Global Capitalism," WIFO Working Papers 303, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2007:i:303
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    File URL: http://www.wifo.ac.at/wwa/pubid/30261
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    References listed on IDEAS

    as
    1. Gayle Allard & Peter H. Lindert, 2006. "Euro-Productivity and Euro-Jobs since the 1960s: Which Institutions Really Mattered?," NBER Working Papers 12460, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Peter Herrmann & Almas Heshmati & Arno Tausch & Chemen S.J. Bajalan, 2009. "Efficiency and Effectiveness of Social Spending," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 35(1), pages 13-43.
    2. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany.
    3. Aykut Mert Yakut & Ebru Voyvoda, 2017. "Intertemporal CGE Analysis of Income Distribution in Turkey," ERC Working Papers 1703, ERC - Economic Research Center, Middle East Technical University, revised Feb 2017.
    4. Tausch, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Science Publish," MPRA Paper 9613, University Library of Munich, Germany.
    5. Farkas, Beáta, 2011. "A közép-kelet-európai piacgazdaságok fejlődési lehetőségei az Európai Unióban
      [The development opportunities for the Central-East European market economies within the European Union]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 412-429.

    More about this item

    Keywords

    welfare state; social model; economic performance; reform policies;

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