Schustereder Welfare State Change in Leading OECD Countries

The Influence of Post-Industrial and Global Economic Developments
2010
ISBN: 978-3-8349-8622-1
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 74, 226 Seiten, eBook

Reihe: ebs-Forschung, Schriftenreihe der EUROPEAN BUSINESS SCHOOL Schloß Reichartshausen

Ingmar J. Schustereder investigates the relative influence of economic globalization and post industrial developments as drivers behind recent welfare state change and examines to what extent different national systems of social protection have preserved their core institutional features over time.

Dr. Ingmar J. Schustereder earned his doctoral degree from the European Business School under Prof. Dr. Joachim Ahrens' supervision. He lives in Vienna and works for an international management consultancy.

Zielgruppe

Research

Autoren/Hrsg.

Schustereder, Ingmar

Inhaltsverzeichnis

1;Foreword;6
2;Acknowledgement;7
3;Contents;8
4;List of Figures;12
5;List of Tables;13
6;List of Abbreviations;15
7;1 Introduction;16
7.1;1.1 Research Scope;16
7.2;1.2 Theoretical Framework;17
7.3;1.3 Methodology;18
7.4;1.4 Course of Investigation;21
8;Part I The Welfare State and Welfare Capitalism;23
9;2 Theoretical Foundations of the Welfare State;24
9.1;2.1 The Welfare State;24
9.1.1;2.1.1 Definition of the TermsWelfare and Welfare State;24
9.1.2;2.1.2 The Core Functions of the Welfare State;25
9.2;2.2 Political Economic Theories on the Rise of the Welfare State;28
9.3;2.3 Welfare State Regimes and the Classification of Advanced Capitalist Welfare States;31
9.3.1;2.3.1 Esping-Andersen’s Welfare State Regime Approach;31
9.3.1.1;2.3.1.1 The Welfare State Regimes and De-Commodification;32
9.3.1.2;2.3.1.2 The Welfare State Regimes and Social Stratification;33
9.3.1.3;2.3.1.3 The Welfare State Regimes and De-Familialization;33
9.3.2;2.3.2 Classification of Advanced Capitalist Welfare States;34
10;3 Worlds of Welfare Capitalism: Interlinking Welfare State and Production Regimes;38
10.1;3.1 Varieties of Production Regimes;38
10.2;3.2 The Welfare State-Economy Nexus;42
10.3;3.3 Classification of Welfare Capitalist Systems;46
11;Part II Historical Development and Contemporary Challenges of the Advanced Capitalist Welfare State;51
12;4 Historical Phases of Welfare State Development;52
12.1;4.1 Social Protection in the Pre-Welfare State Era;52
12.2;4.2 The Genesis of the Welfare State;53
12.3;4.3 The Interwar Period of Consolidation;55
12.4;4.4 The “Golden Age” of Major Welfare State Expansion;56
12.5;4.5 The Welfare State in the Post-“Golden Age” Era;59
13;5 Post-Industrial Challenges of the Contemporary Capitalist Welfare State;60
13.1;5.1 The Phenomenon of Deindustrialization;60
13.2;5.2 The Demographic Shift;65
13.3;5.3 Changing Household Structures and the Rise of New Social Risks;70
13.4;5.4 Welfare State Maturation and Labor Market Imbalances;74
13.5;5.5 Post-Industrial Pressures and Agents of Welfare State Change: Partisan Politics versus New Politics;77
14;6 Economic Globalization and the Contemporary Capitalist Welfare State;81
14.1;6.1 The Underlying Causal Forces of Economic Globalization;81
14.2;6.2 The Three Dimensions of Economic Globalization;82
14.2.1;6.2.1 The Globalization of Product Markets;83
14.2.1.1;6.2.1.1 Trade Globalization72;83
14.2.1.2;6.2.1.2 Foreign Direct Investment and the Globalization of Corporate Activities76;87
14.2.2;6.2.2 The Globalization of Capital Markets81;90
14.2.3;6.2.3 The Globalization of Labor Markets88;97
14.3;6.3 The Effects of Global Economic Forces on the Welfare State: Four Different Hypotheses;104
14.3.1;6.3.1 The Openness Literature;105
14.3.1.1;6.3.1.1 The Competitiveness View;105
14.3.1.2;6.3.1.2 The Compensation View;107
14.3.1.3;6.3.1.3 The Curvilinear View;109
14.3.2;6.3.2 The Context-Contingent View – Globalization and Varieties of Welfare Capitalism;109
15;Part III Empirical Analyses of the Driving Forces Behind the Contemporary Capitalist Welfare State;114
16;7 Methodological Issues in Comparative Welfare Capitalism Research;115
17;8 A Quantitative Study on the Determinants of Welfare Spending;119
17.1;8.1 Patterns of Public Social Spending;119
17.2;8.2 The Econometric Analysis;124
17.2.1;8.2.1 Contribution to Comparative Welfare State Research;124
17.2.2;8.2.2 Modeling Potential Determinants of Welfare Spending;126
17.2.2.1;8.2.2.1 Explanatory Variables as a Proxy for Post-Industrial Challenges;127
17.2.2.2;8.2.2.2 Explanatory Variables as a Proxy for the Openness Literature;128
17.2.2.3;8.2.2.3 Explanatory Variables as a Proxy for the Context-Contingent View;128
17.2.2.4;8.2.2.4 Control Variables;129
17.3;8.3 Methodology;132
17.4;8.4 Empirical Results;136
17.4.1;8.4.1 Baseline Model Results;137
17.4.2;8.4.2 Interaction Model Results;143
17.4.3;8.4.3 Structural Break Model Results;153
17.4.4;8.4.4 Shortcomings of the Quantitative Analysis and Further Research Needs;156
18;9 A Qualitative Study on the Recent Development Process of Advanced Capitalist Welfare States;158
18.1;9.1 The Development of Welfare State Revenues in the Contemporary Era;158
18.1.1;9.1.1 The Competitiveness View and the Hypothesis of International Tax Competition;158
18.1.2;9.1.2 The Hypothesis of Tax Competition in the Empirical Literature;160
18.1.3;9.1.3 The Evolution of Welfare State Revenues: A Cross-Country Analysis;161
18.2;9.2 The Development of Welfare Expenditure Patterns in the Contemporary Era;171
18.2.1;9.2.1 A Brief Summary Review of Welfare State Regime Analysis;172
18.2.2;9.2.2 The Recent Development Process of the Three Welfare State Clusters: A Comparative Analysis;172
18.2.2.1;9.2.2.1 The Three Welfare State Clusters in Broad Perspective: Size and Principal Categories of Public Social Spending;173
18.2.2.2;9.2.2.2 The Three Welfare State Clusters and the Welfare State-Labor Market Nexus;177
19;10 Summarized Findings and Conclusion;183
20;Appendix;186
21;References;207

The Welfare State and Welfare Capitalism.- Theoretical Foundations of the Welfare State.- Worlds of Welfare Capitalism: Interlinking Welfare State and Production Regimes.- Historical Development and Contemporary Challenges of the Advanced Capitalist Welfare State.- Historical Phases of Welfare State Development.- Post-Industrial Challenges of the Contemporary Capitalist Welfare State.- Economic Globalization and the Contemporary Capitalist Welfare State.- Empirical Analyses of the Driving Forces Behind the Contemporary Capitalist Welfare State.- Methodological Issues in Comparative Welfare Capitalism Research.- A Quantitative Study on the Determinants of Welfare Spending.- A Qualitative Study on the Recent Development Process of Advanced Capitalist Welfare States.- Summarized Findings and Conclusion.

Leseproben

5 Post-Industrial Challenges of the Contemporary Capitalist Welfare State (S. 45-46)

As briefly outlined in the introduction to Part II, nation states are not only confronted with challenges arising from increasing international economic integration, but also have to face severe strains in the domestic realm. Reviewing prior classifications of the driving forces of welfare state change (for example, Brady et al., 2005, pp. 922-925, Brady et al., 2007, pp. 318-320, Ellison, 2006, pp. 48-59, Genschel, 2004, Hicks, 1999, pp. 157-168, Chapter 7, Koster, 2008, pp. 2-3), the author identifies a school of thought, which takes a critical stance toward welfare state-globalization nexus oriented views (see Chapter 6.3).

Precisely, this theoretical perspective downplays the role of global economic forces, suggesting instead that domestic factors are by far more important drivers of contemporary welfare state development (for example, Castles, 2001, Iversen, 2001, Iversen & Cusack, 2000, Pierson, 2001a, Pierson, 1996, Pierson, 1994/ 1997). As a consequence, they have been looking at so-called “post-industrial pressures” (Pierson, 2001a, p. 80) evolving within advanced capitalist welfare states in order to identify possible determinants of public social spending.

Among the various factors, Pierson (2001a) considers processes of deindustrialization, population ageing, changing household structures, and welfare state maturation to be the most severe post-industrial challenges for contemporary welfare states (pp. 82-83, see Buti et al., 1998, pp. 17-22, Esping-Andersen, 2005). Following Pierson’s (2001a) analysis, the author will shed light on each of these domestic welfare state pressures. Finally, the chapter will also focus on the potential implications these post-industrial developments are likely to have for the political decision-making process.

5.1 The Phenomenon of Deindustrialization

During the last four decades OECD countries have seen a dramatic fall in the share of agricultural and industrial employment relative to total employment – a phenomenon commonly termed as process of deindustrialization (Rowthorn & Ramaswamy, 1997, p. 4). As depicted in Figure 2, the employment share of both sectors amounted to 60 percent of total civilian employment for Continental-European and Nordic countries and 50 percent for Anglo-Saxon countries in 1960, by 2000, this share has decreased to 30 percent in almost all high-income countries (see Iversen & Cusack, 2000, pp. 314-315).

Über Autor(innen)

Dr. Ingmar J. Schustereder earned his doctoral degree from the European Business School under Prof. Dr. Joachim Ahrens’ supervision. He lives in Vienna and works for an international management consultancy.