Welfare Regimes and the Incentives to Work and Get Educated

Andrés Rodríguez-Pose and Vassilis Tselios
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Andrés Rodríguez-Pose: Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, England; and IMDEA Social Sciences, Madrid, Spain
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

Environment and Planning A, 2012, vol. 44, issue 1, 125-149

Abstract: This paper examines whether differences in welfare regimes shape the incentives to work and get educated. Using microeconomic data for more than 100 000 European individuals, we show that welfare regimes make a difference for wages and education. First, people-based and household-based effects (internal returns to education, and household wage and education externalities) generate socioeconomic incentives for people to get an education and work which are stronger in countries with the weakest welfare systems, that is, those with what is known as ‘residual’ welfare regimes (Greece, Italy, Spain and Portugal). Second, place-based effects and, more specifically, differences in regional wage per capita and educational endowment and in regional interpersonal income and educational inequality, also influence wages and education in different ways across welfare regimes. Place-based effects have the greatest impact in the Nordic social-democratic welfare systems. The results are robust to the inclusion of a large number of people-based and place-based controls.

Keywords: welfare regimes; wages; education; incentives; regions; EU (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Welfare regimes and the incentives to work and get educated (2011)
Working Paper: Welfare regimes and the incentives to work and get educated (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:44:y:2012:i:1:p:125-149

DOI: 10.1068/a44102

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