A Historical-Institutional Study of the Welfare Systems in the United States and Sweden: Net Social Wage Approach

In this study I first look at the historical developments of the welfare systems in Sweden and the United States to understand why these countries have produced two distinct systems over the years. After understanding their historical context I turn to the question of the relationship between the welfare system and economic growth. Policy makers and the mainstream media commonly cite the critique that through government deficit and public debt, welfare systems are a drag on the economy. By calculating the net social wage, the difference in taxes paid and benefits received by workers, I test this hypothesis to see if welfare systems are self-financed by the workers. My findings demonstrate that the net social wage has been negative in the U.S. from 1962 to the early 2000s and in Sweden from 1965 to 2012. This shows that the welfare systems are entirely self-financed by the workers for the full period in Sweden and until the recent financial crisis in the U.S.

The Meanings of Work for Older Workers

Several elements influence the meanings of work: the basic psychological processes of aging; the cohort or generation of the worker; the ecology of the work itself; and the larger social context of managing the risks of aging. This article discusses the meaning of work across the lifespan, and then reviews each of these elements to describe the meanings of work for older workers. The authors summarize data from multiple sources to answer several related questions: Why do older workers continue to work—beyond the solely monetary motivation? How do older workers' meanings of work vary by financial, health, job satisfaction, familial, or workplace concerns? What are the implications of these findings for employers and employees?