Changes in Socio-Demographic Situation and Social Convergence

Tiia P¸ss () and Mare Viies ()
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Tiia P¸ss: Estonian Institute of Economics at Tallinn University of Technology
Mare Viies: Estonian Institute of Economics at Tallinn University of Technology

No 114, Working Papers from Tallinn School of Economics and Business Administration, Tallinn University of Technology

Abstract: The European Union Candidate Countries, including Estonia, lag behind the European Union (EU) level of economic and social development. By convergence we usually mean harmonisation of the level of incomes across countries. Convergence also means harmonisation of particular economic indicators, equalisation. Social convergence is discussed in the latter meaning. According to the economic theory of convergence, the economic development level of less developed countries should approach the level of more advanced countries with the same economic resources or fundamentals. This paper discusses convergence of social protection expenditure, analyses trends in the economic and socio-demographic situation and respective social policy measures that influence the convergence process in EU countries. Estimates of social protection expenditure in EU countries indicate faster development of countries with lower level of social protection in recent years. Many reforms accomplished there have helped to raise the social protection level in less developed countries. A comparison of social protection expenditure and evaluation of changes there should also characterise the social convergence process between EU countries. Analyses of social trends in EU countries enable to evaluate preconditions that would help the candidate countries, including Estonia, to achieve social convergence with accession to the EU.

Keywords: convergence; socio-economic policy; social protection system; social protection expenditure; economic and demographic determinants; European Union (search for similar items in EconPapers)
JEL-codes: F42 H53 O52 (search for similar items in EconPapers)
Pages: 14
Date: 2004
Note: We wish to thank Lisa Wilder of the Albright College for her useful comments and Reet Maldre for the assistance. This paper has been prepared with the support of the project financed by the Estonian Ministry of Education (0341765s01) and the Estonian SF grant 5083.
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Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 171-184

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