Welfare State Retrenchment: The Partisan Effect Revisited

Bruno Amable, Donatella Gatti and Jan Schumacher

No 1995, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper aims to shed light on the role of the 'ideology' of political parties in shaping the evolution of the welfare state in 18 developed democracies, by providing empirical findings on the determinants of social programs entitlements and social spending over the period 1981-1999. The paper shows that structural change is a major determinant of the extent of social protection. Our results suggest that overall spending is driven up by structural change. On the other hand, strong structural change has a negative influence on welfare entitlements measured by net replacement rates of sickness insurance or unemployment benefits. Partisan influence plays an important role in the dynamics of the welfare state. Left-wing governments strengthen the positive effect of shocks on aggregate social expenditure while right-wing governments undertake even stronger cutbacks in replacement rates as a reaction to structural change.

Keywords: structural change; ideology; welfare state (search for similar items in EconPapers)
JEL-codes: H5 I1 J8 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-03
New Economics Papers: this item is included in nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Published - published in: Oxford Review of Economic Policy, 2006, 22 (3), 426-444

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Related works:
Journal Article: Welfare-State Retrenchment: The Partisan Effect Revisited (2006)
Working Paper: Welfare-State Retrenchment: The Partisan Effect Revisited (2006)
Working Paper: Welfare-State Retrenchment: The Partisan Effect Revisited (2006)
Working Paper: Welfare state retrenchment: The partisan effect revisited (2006)
Working Paper: Welfare state retrenchment: The partisan effect revisited (2006)
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