Journal Article

Welfare-State Retrenchment: The Partisan Effect Revisited

Bruno Amable, Donatella Gatti and Jan Schumacher

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 22, issue 3, pages 426-444
Published in print January 2006 | ISSN: 0266-903X
Published online January 2006 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/grj025
Welfare-State Retrenchment: The Partisan Effect Revisited

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  • Economic Development and Growth
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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-programme entitlements and social spending over the period 1981–99. 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 the net rate of sickness insurance. 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.

Journal Article.  0 words. 

Subjects: Economic Development and Growth ; Public Economics ; Political Economy ; Public Policy

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