Employment Outcomes in the Welfare State

L. Rachel Ngai and Christopher Pissarides

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We examine the implications of tax and subsidy policies for employment in the "three worlds of welfare", Anglo-Saxon, Continental European and Scandinavian. We argue that home production is key to a proper evaluation of the employment outcomes. Anglo-Saxon low-support policies encourage more overall market employment. Continental transfer polilcies encourage more home production in services with close substitutes at home. Scandinavian policies give incentives to move home production in social services to the market but discourage other service activity. We find support for our claims in sectoral employment data for five representative countries, United States, Britain, France, Italy and Sweden.

Keywords: welfare state; employment; social services; tax and subsidy; three worlds of welfare (search for similar items in EconPapers)
JEL-codes: E24 I38 J22 (search for similar items in EconPapers)
Date: 2008-02
New Economics Papers: this item is included in nep-eec, nep-hap, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Employment Outcomes in the Welfare State (2008)
Working Paper: Employment outcomes in the welfare state (2008)
Working Paper: Employment outcomes in the welfare state (2008)
Working Paper: Employment Outcomes in the Welfare State (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0856

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