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Oxford Review of Economic Policy 2006 22(3):301-312; doi:10.1093/oxrep/grj018
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Oxford Review of Economic Policy vol. 22 no. 3 2006 © The Authors (2006). Published by Oxford University Press. All rights reserved.

Welfare States in Hard Times

Donatella Gatti
University of Paris XIII, CEPREMAP, and IZA

Andrew Glyn
Corpus Christi College, Oxford1

Abstract

Welfare states have been subject to a host of conflicting pressures from high unemployment, rising income inequality, population aging, tax competition, rising budget deficits and debts, slow growth, and fears that economic dynamism was being stifled by excessive taxes and benefit levels. Nevertheless total spending on welfare has edged up in many countries and cuts in rates of benefit have generally been fairly modest. The generosity of the welfare state has an enormous influence on poverty and income inequality and still appears to be popular in most of Europe. Suggestions that society would benefit from reduced working time must reckon with the fact that it is paid work which generates the tax revenue required to fund welfare spending.

Footnotes

1 E-mail addresses: donatella.gatti{at}cepremap.cnrs.fr; andrew.glyn{at}economics.oxford.ac.uk


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