Employment outcomes in the welfare state

L. Rachel Ngai and Christopher Pissarides

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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 policies 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 (search for similar items in EconPapers)
JEL-codes: E24 I38 J22 (search for similar items in EconPapers)
Date: 2008-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Revue Economique, May, 2008, 59(3), pp. 413-436. ISSN: 0035-2764

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http://eprints.lse.ac.uk/3599/ Open access version. (application/pdf)

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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