scholarly journals INCOME INEQUALITY, MOBILITY, AND THE WELFARE STATE: A POLITICAL ECONOMY MODEL

2012 ◽  
Vol 17 (6) ◽  
pp. 1198-1226 ◽  
Author(s):  
Luca Bossi ◽  
Gulcin Gumus
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Social Insurance ◽  
Overlapping Generations ◽  
Tax Rates ◽  
Overlapping Generations Model ◽  
Public Programs ◽  
Transfer Payments ◽  
Set Up ◽  
The Welfare State

In this paper, we set up a three-period stochastic overlapping-generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.

scholarly journals Skill-Biased Technological Change and Inequality in the U.S.

2020 ◽  
pp. 91-107
Author(s):  
Ana Ferreira
Keyword(s):  
Income Inequality ◽  
Technological Change ◽  
Incomplete Markets ◽  
Gini Coefficient ◽  
Income Tax ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Biased Technological Change ◽  
Household Heterogeneity ◽  
The U.S

Since the 1980s, income inequality has increased markedly and has reached the highest level ever since it started being recorded in the U.S. This paper uses an overlapping generations model with incomplete markets that allows for household heterogeneity that is calibrated to match the U.S. economy with the purpose to study how skill-biased technological change (SBTC) and changes in taxation quantitatively account for the increase in inequality from 1980 to 2010. We find that SBTC and taxation decrease account for 48% of the total increase in the income Gini coefficient. In particular, we conclude that SBTC alone accounted for 42% of the overall increase in income inequality, while changes in the progressivity of the income tax schedule alone accounted for 5.7%.

scholarly journals The development of the Welfare State in Portugal: trends in social expenditure between 1938 and 2003

2010 ◽  
Vol 28 (3) ◽  
pp. 469-501 ◽  
Author(s):  
Daniel Fernando Carolo ◽  
José António Pereirinha
Keyword(s):  
Welfare State ◽  
Social Insurance ◽  
Data Series ◽  
Social Risk ◽  
Social Expenditure ◽  
Social Risks ◽  
Institutional Structures ◽  
Risk Protection ◽  
The Impact ◽  
The Welfare State

AbstractThis paper presents a data series on social expenditure in Portugal for the period 1938-2003. The series was built with the aim of identifying and characterizing the most significant phases in the process leading up to the current welfare state system in this country. The establishment of a social insurance (Previdência) in 1935 was one of the founding pillars of the Estado Novo (New State). Reforms to Social Welfare (Previdência Social) in 1962, while in the full throes of the New State, policy measures taken after the revolution of 1974 and a new orientation for social policy following the accession of Portugal to the European Economic Community (EEC) in the mid-1980s brought about significant transformations in the institutional organizational structure that provided welfare and conferred social rights in Portugal. To understand this process, knowledge is needed of the transformations to the institutional structures governing the organizations that provided welfare, welfare coverage in terms of the type of benefit and the population entitled to social risk protection, the magnitude of spending on benefits associated with these risks, as well as how benefits were allocated between the institutions. We built a data series for the period 1938-1980, which can then be matched to data already published in the OECD Social Expenditure Database from 1980 onwards. As a result, a consistent series for social expenditure from 1938 to 2003 was obtained. The methodology used to create the series enabled us to measure the impact of the variation in population coverage for social risks and the average generosity of benefits on the relative share of social expenditure in GDP. We present an interpretive reading for the full period, covering the New State and the Democracy from 1974, of the process of building the welfare state in Portugal.

European Integration and an Institutional Theory of Inequality

2019 ◽  
pp. 1-40
Author(s):  
Jason Beckfield
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Institutional Theory ◽  
European Integration ◽  
Class Struggle ◽  
Welfare States ◽  
European Level ◽  
Citizenship Rights ◽  
Welfare State Development ◽  
The Welfare State

This chapter provides an overview of the book’s main themes. The book argues that European integration has reorganized class struggle to the European level, entrenching a technocratic capitalism that weakens welfare states and raises income inequality. It asks: How have the fruits of European labor been distributed? Who wins and who loses from European integration? How are citizenship rights and economic fortunes being distributed? The remainder of the chapter discusses trends in welfare-state development and income inequality; current approaches to the welfare state and income inequality; and the turn toward to technocratic capitalism that now characterizes the EU’s policy priorities.

The Beginnings of the Nordic Welfare States: Similarities and Differences

1978 ◽  
Vol 21 (1_suppl) ◽  
pp. 9-33 ◽  
Author(s):  
Stein Kuhnle
Keyword(s):  
Welfare State ◽  
Social Insurance ◽  
Large Scale ◽  
Welfare States ◽  
Nordic Countries ◽  
Present Stage ◽  
Compulsory Insurance ◽  
Similarities And Differences ◽  
The Welfare State

The beginning of our present stage in the development of the welfare state can be traced to Bismarck's large-scale social insurance schemes of the 1880s. The article compares various political and economic macro-characteristics of the Nordic countries at that time, and proposes hypotheses about the timing of legislation in the Nordic nations, and about the likelihood for Nordic imitations of the principle of compulsory insurance. The article discusses why Denmark was expected to become, and in fact became, a forerunner in the Nordic context, and why the principle of compulsory insurance stood a better chance of gaining acceptance in Norway than in Denmark and Sweden.

Home Ownership, Social Insurance, and the Welfare State

2006 ◽  
Vol 21 (1) ◽  
pp. 55-82 ◽  
Author(s):  
Dalton Conley ◽  
Brian Gifford
Keyword(s):  
Welfare State ◽  
Social Insurance ◽  
Home Ownership ◽  
The Welfare State

The Break-Up of the Poor Laws— German Style: Progressivism and the Origins of the Welfare State, 1900–1918

2008 ◽  
Vol 50 (4) ◽  
pp. 981-1009 ◽  
Author(s):  
Larry Frohman
Keyword(s):  
Welfare State ◽  
Social Insurance ◽  
Subsequent Development ◽  
Social Security Systems ◽  
Security Systems ◽  
Poor Law ◽  
Poor Laws ◽  
The Poor ◽  
History Of ◽  
The Welfare State

While the 1834 New Poor Law and the controversies over its reform represent one of the central threads in every narrative of the history of modern Britain, the same can hardly be said of the German poor laws, whose history is far less known. This is due in large part to a historiographical tradition that sees the Bismarckian social insurance programs as the fons et origo of the German welfare state and thus marginalizes all forms of social assistance that can not be neatly fitted into the narrative pre-history or subsequent development of these programs. This contrasts with a British tradition where, as E. P. Hennock has recently argued, national insurance was primarily conceived as a means of poor law reform, and where the poor laws figure prominently in the historiography of the welfare state. On the other hand, this insurance-centered approach to the welfare state is not entirely to blame because, for their part, historians of poor relief have not been able to establish any positive connections between individualized, subsidiary, deterrent relief and social insurance or social security systems based on rights deriving from either contributions or citizenship.

Worker and the Welfare State in Imperial Germany

1991 ◽  
Vol 40 ◽  
pp. 18-46 ◽  
Author(s):  
George Steinmetz
Keyword(s):  
Working Class ◽  
Welfare State ◽  
Democratic Party ◽  
Social Insurance ◽  
Social Democratic Party ◽  
Social Democrats ◽  
Imperial Germany ◽  
The Social ◽  
Insurance Funds ◽  
The Welfare State

A complex relationship existed between working-class formation and the development of the welfare state in Imperial Germany between 1871 and 1914. In the 1880s, the Social Democratic party voted against the three major national social insurance law's, and many workers seemed to spurn the incipient welfare state. But by 1914, socialists were active in social policy-making and workers were participating in the operations of the welfare state. Tens of thousands of workers and social democrats held positions in the social insurance funds and offices, the labor courts and labor exchanges, and other institutions of the official welfare state. Hundreds of workers had even become “friendly visitors” in the traditional middle-class domain of municipal poor relief. This shift is interesting not only from the standpoint of working-class orientations; it also challenges the received image of the German working class as excluded from the state —an interpretation based on an overly narrow focus on national parliamentary politics.

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