Choosing the path of austerity: how parties and policy coalitions influence welfare state retrenchment in periods of fiscal consolidation

What are the conditions under which some austerity programmes rely on substantial cuts to social spending? More specifically, do the partisan complexion and the type of government condition the extent to which austerity policies imply welfare state retrenchment? This article demonstrates that large budget consolidations tend to be associated with welfare state retrenchment. The findings support a partisan and a politico-institutionalist argument: (i) in periods of fiscal consolidation, welfare state retrenchment tends to be more pronounced under left-wing governments; (ii) since welfare state retrenchment is electorally and politically risky, it also tends to be more pronounced when pursued by a broad pro-reform coalition government. Therefore, the article shows that during budget consolidations implemented by left-wing broad coalition governments, welfare state retrenchment is greatest. Using long-run multipliers from autoregressive distributed lag models on 17 OECD countries during the 1982–2009 period, substantial support is found for these expectations.

Cohort-specific effects of the expansion of the welfare state on job opportunities: a longitudinal analysis of three birth cohorts in the Federal Republic of Germany

Ziel der Untersuchung war es, Einflüsse auf den Arbeitsmarkt der Bundesrepublik durch das Anwachsen des Wohlfahrtsstaates zu ermitteln. Zu diesem Zweck wurden zwischen 1981 und 1983 2.171 Männer und Frauen der Geburtskohorten 1929-31, 1939-41 und 1949-51 mit standardisierten Interviews befragt zu ihrem Lebensverlauf, speziell unter den Gesichtspunkten: Soziale Herkunft, Ausbildung, Beschäftigung, Familie, Mobilität. Insbesondere interessierte die Frage nach der Beschäftigung im öffentlichen Dienst oder in der Privatwirtschaft bzw. ob und wann ein Wechsel von einem in den anderen Bereich stattgefunden hat. Einige Ergebnisse: Die Bildungsexpansion in den 70er Jahren führte dazu, daß eine steigende Anzahl von Universitätsabsolventen im öffentlichen Dienst Beschäftigung fand; seit der Stagnation des Wohlfahrtsstaates ab ca. 1980 sind die Beschäftigungschancen für hochqualifizierte Berufsanfänger dort wieder gesunken. In der Privatwirtschaft wird unqualifizierte Beschäftigung durch höher qualifizierte ersetzt, während im öffentlichen Dienst bei geringerem Arbeitsplatzangebot weniger hochqualifizierte Berufsanfänger nachgefragt werden.

Shaping Tolerant Attitudes towards Immigrants: The Role of Welfare State Expenditures

This article contributes to the ongoing discussion on how tolerance may be fostered in Western European countries and to the question of how contextual factors such as welfare state expenditures may contribute to this formation. Tolerance is understood as a basic democratic principle that helps civil societies cope with rising levels of diversity stemming from increased immigration and individualism. Within the tolerance literature it is commonly agreed upon that a comprehensive welfare state is capable of bridging class divides and overcoming social categorization. However, over the past decades European welfare states experienced an ongoing influx of immigrants, challenging their general purpose and increasing notions of ‘welfare chauvinism’. Drawing on insights from both tolerance and welfare state solidarity literature, we implement hierarchical analyses based on Eurobarometer data to assess the potential influence of welfare state universalism on political and social tolerance in 15 Western European countries. Moreover, we demonstrate that this relationship is highly conditional on the degree of ethnic heterogeneity within a country.

The Good Society. A Comparative Study of Denmark and Switzerland

Denmark and Switzerland are small and successful countries with exceptionally content populations. However, they have very different political institutions and economic models. They have followed the general tendency in the West toward economic convergence, but both countries have managed to stay on top. They both have a strong liberal tradition, but otherwise their economic strategies are a welfare state model for Denmark and a safe haven model for Switzerland. The Danish welfare state is tax-based, while the expenditures for social welfare are insurance-based in Switzerland. The political institutions are a multiparty unicameral system in Denmark, and a permanent coalition system with many referenda and strong local government in Switzerland. Both approaches have managed to ensure smoothly working political power-sharing and economic systems that allocate resources in a fairly efficient way. To date, they have also managed to adapt the economies to changes in the external environment with a combination of stability and flexibility.