The Welfare State, Budgetary Pressure and Labour Market Shifts

Anthony Atkinson

Scandinavian Journal of Economics, 2000, vol. 102, issue 3, 445-462

Abstract: Public debate about the welfare state in OECD countries has emphasized the need for reform to meet a twofold set of shocks: budgetary pressure and a labour market shift against unskilled workers. The aim of the paper is to set out a framework for examining the implications of these shocks for the optimal scale of social transfers and, in particular, the impact on different societies, distinguishing a restricted welfare state, labelled “the United States” and a more extensive welfare state, labelled “Continental Europe”.

Date: 2000
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