From Subsidiarity to 'Free Choice': Child- and Elder-care Policy Reforms in France, Belgium, Germany and the Netherlands

This article analyses the patterns of reform in care policies in Bismarckian welfare systems since the early 1980s. Based on a comparison of France, Germany, Belgium and the Netherlands, the article shows that these reforms share similar logics and trajectories, which can be explained by the shared conservative and corporatist traits of Bismarckian labour markets and welfare state institutions and their impact on labour market adjustment possibilities and preferences. Indeed, we argue that care policy reforms have been very closely linked to specific employment strategies, and the politics of welfare without work and subsequent attempts to shift away from such a labour-shedding strategy go a long way in explaining both the nature and the timing of child- and elder-care policy reforms in Bismarckian welfare systems. The article also shows how a focus on promoting ‘free choice’ in all four countries has justified the introduction of measures that have simultaneously reinforced social stratification in terms of access to the labour market – meaning that some women have much more ‘free choice’ than others – and weakened certain labour market rigidities. To conclude, we argue that care policy reforms have provided a backdoor for the introduction of labour-cheapening measures and for increasing employment flexibility in otherwise very rigid labour markets.     

The state of the German social insurance state: Reform and resilience

At the core of the German system of welfare provision stand social insurance schemes whose central role contributes to Germany being labelled a social insurance state. In recent decades, Germany has been experiencing major social policy reforms that are often evaluated as paradigm changes. These changes have been reflected in analyses that sometimes even questioned common classifications of the German welfare state. The article sheds light on recent developments that have affected the German system of social insurance. It focuses on four aspects of social insurance: benefits, financing, governance, and coverage. Although confirming many earlier analyses of reforms in detail and sharing assessments of changes such as retrenchment and marketization, the article nevertheless stresses that social insurance remains structurally intact and that the work–welfare nexus underlying welfare provision has been reinterpreted but not surrendered.     

Policy Change at a Time of Retrenchment: Recent Pension Reform in France, Germany, Italy and the UK

Two influential recent approaches to social policy in Europe imply (for different reasons) that the reforms currently on the agenda, which typically involve cost-containment, are peculiarly difficult to achieve. Esping-Andersen sees much of Europe as set in a "frozen welfare landscape", due to the power of the interests advantaged by the status quo. Pierson sees retrenchment as a peculiarly difficult problem for all governments, regardless of their political ideology. This paper reviews recent pension policy in France, Germany, Italy and the UK. It argues that developments in Germany indicate that it is possible to achieve appropriate policy change in the country which is often used as the paradigm of entrenched interests without major restructuring of the system. Conversely, recent reforms in the UK (seen by Pierson as the country which has achieved the most rapid changes) appear disproportionate to the scale of the problems faced and may have damaged pensioners' interests. This indicates that the capacity to achieve substantial reform is not necessarily in itself a virtue. The real issue is the quality of reform achieved.     

Killing the Golden Goose? Third Sector Organizations and Back‐to‐Work Programmes in Germany and the UK

Third sector, or not-for-profit, organizations have been viewed in many parts of Europe as agencies that can be harnessed by public policy programmes to support the socially excluded. Within the emerging mixed economy of welfare, third sector agencies offering training, support and employment for groups disadvantaged in the labour market provide an important example. This illustrates, from one specific field, the dynamics occurring at the interface between public and third sectors in the delivery of public policy goals. This article examines both the history of 'partnership regimes' in this field and the evolving local organizational arrangement. The developments in the contrasting welfare regimes of Britain and Germany, which exemplify different institutional traditions, are analysed. The potential impact of regulatory changes on the capacity of third sector work integration agencies to deliver policy goals is assessed in both countries using evidence from recent case study research. The analysis suggests that the emerging managerialist partnership structures are tending to convert third sector organizations into 'just in time' deliverers of poor programme outcomes in both welfare regimes while also eroding their distinctive potential to provide more than mere labour market integration.     

Towards Neo-Bismarckian Health Care States? Comparing Health Insurance Reforms in Bismarckian Welfare Systems

Germany, France and the Netherlands all have specific ‘Bismarckian’ health insurance systems, which encounter different and specific problems (and solutions) from those of national health systems. Following a relatively similar trajectory, the three systems have gone through important changes: they now combine universalization through the state and marketization based on regulated competition; they associate more state control (directly or through agencies) and more competition and market mechanisms. Competition between insurers has gained importance in Germany and the Netherlands and the state is reinforcing its controlling capacities in France and Germany. Up to now, continental health insurance systems have remained, however, Bismarckian (they are still mainly financed by social contribution, managed by health insurance funds, they deliver public and private health care, and freedom is still higher than in national health systems), but a new ‘regulatory health care state’ is emerging. Those changes are embedded in the existing institutions since the aim of the reforms is more to change the logic of institutions than to change the institutions themselves. Hence, structural changes occur without revolution in the system.     

Subsidizing wages or supplementing transfers? The politics and ambiguity of in-work benefits

In-work benefits (IWB) have become mainstream social policy programmes in modern welfare states. Aimed at employment promotion as well as poverty reduction, their introduction and expansion have been supported by both centre-right and centre-left governments. However, the article argues that policy positions towards IWB are essentially unstable. Political preferences can alter fast, with the same actors advocating IWB growth at one time and containment at another. In part, this is influenced not only by prevailing socio-economic conditions but also by the institutional shape of IWBs, their interaction with complementary policies, and their inherently ambiguous nature. Characterized by multiple aims, IWBs occasionally offer political opportunities but often create challenges and even confound policymaking. Thus, the understanding of the politics of IWB requires a careful consideration of the particular properties of concrete IWBs and the ways in which they relate to other policy arenas. The article discusses this with reference to relevant debates and reforms in Germany.     

Portuguese healthcare reforms in the context of crisis: External pressure or domestic choice?

As a result of the recent economic crisis, in 2011, Portugal signed a Memorandum of Understanding with the European Central Bank, the European Commission, and the International Monetary Fund (the “Troika”). In exchange for Troika's financial assistance, the Memorandum required the implementation of a specific set of reforms targeted at the healthcare sector. The literature on policy reforms in the context of crisis and conditionality argues that governments have restricted room to manoeuver in responding to external pressure. We challenge this view, finding that even in cases of conditionality and strong external pressures, crisis can be used as a window of opportunity for reforms substantially shaped by domestic policy choices. In the case of Portuguese health reforms, these choices were based on pre‐existing reform plans aimed on resolving country‐specific deficiencies of the healthcare system and were enabled by the two main political parties' strategies of tacit cooperation and blame avoidance. The article emphasizes the need for more fine‐grained analysis of welfare reforms in the crisis that pays equal attention to the institutional characteristics and the political context of the affected countries.     

Welfare State Changes and Outcomes – The Cases of Portugal and Denmark from a Comparative Perspective

It is well known that welfare states ensure a certain level of social protection affecting levels of well‐being and the extent of inequalities in society. Changes within crucial domains of social policy, such as education, health, or social protection, have, therefore, a major effect upon individuals' opportunities. In this article I compare the effects of these changes in two countries from the mid‐1980s to the financial crisis of 2008. Portugal that was a latecomer in welfare state development and Denmark was at the forefront of de‐commodification and universalization of social rights. The conclusion of this article is that income inequality has been steadily increasing in Danish society; while in Portugal, despite improvements in many social domains (healthcare, poverty alleviation, unemployment protection), problems of inequality remain deeply embedded in the country's social and institutional structures.     

The digital economy and the future of European welfare states

As a consequence of new technology, labour markets are changing. This article’s central aim is to discuss variations among welfare states in Europe to adjust to changing labour markets. These variations in adjustment suggest that some welfare states are more prepared than others, including their capacity to ensure their sustainable financing. In the years to come, the predicted impact of technological development on labour markets will be huge. Impacts will include stronger “dualization” and new cleavages between “insiders” and “outsiders”. Fewer industrial jobs are to be expected, and service‐sector employment faces a risk of decline due to automation. While the creation of new jobs is likely, it remains to be seen whether these will replace the number of jobs destroyed, leaving the risk that many people whose skills become obsolete will become unemployed in the short as well as the longer term. Furthermore, even if the same number of jobs are eventually created, there will be a period of transition. In the light of this, welfare states will be challenged, not only in how they can finance their activities but also in terms of the threat posed to social cohesion by emerging labour market “winners” and “losers”, with an accompanying higher risk of increasing inequality. The article offers suggestions as to how welfare states may cope with the changes related to the financing of welfare states, and how active labour market policy can be part of the response to help alleviate the expected dramatic changes. Also required is a discussion on the annual average number of hours people will work and how this might be a factor in lower future levels of unemployment.     

Successful yet insufficient: German policies for higher employment rates among older age groups

In recent years among the OECD countries, Germany has witnessed the largest increase in the employment rates of older people. This increase, and general German employment rates, are associated with both supply side measures in the fields of pensions and unemployment policies and employment promotion policies. Yet, supply side measures and Germany's shift from conservative towards liberal policy goals and policies in the case of older workers have resulted in economic inequality. These policies could be complemented by pro‐employability measures in order to become fully effective. This article describes recent policy reforms in the main policy fields of retirement, unemployment, and employment promotion, considers their effects on employment and inequality, and offers reform suggestions to raise further older worker employment rates without increasing inequality.     

Partisanship,continuity, and change: Politics in Finnish unemployment benefit reforms 1985–2016

The apparent decline of partisan effects on social policies since the 1980s has encouraged the development of theories that challenge the traditional partisan politics theory. Although the new politics approach pointed to institutional path-dependence and to the unpopularity of radical retrenchment, recent research has highlighted shifts in electoral landscapes, differences in party systems and institutional contexts, and changing party-voter linkages. This in-depth case study contributes to debates on partisan effects by focusing on Finland, whose dualistic unemployment benefit system and institutional and political conditions provide an interesting case to analyse changing partisan effects. The aim is to explain, through qualitative policy analysis, why government partisanship has not had a significant effect on unemployment benefit levels since 1985. The explanations are different for earnings-related and flat-rate benefits. For the former, retrenchment efforts have seen a distinct partisan divide, but trade unions have thwarted most cutbacks; thus, although partisanship has not mattered much for policy outcomes, power resources have remained important as inhibitor of cuts. For the latter, parties that in the late 1980s still had differing priorities have since converged on policies emphasizing activation and work incentives. Universal flat-rate benefits have lacked political support and have been left to stagnate. The study suggests that one single theory is not sufficient to explain developments even in one single welfare policy—there are too many aspects to cover—not to speak of the entire welfare state consisting of an array of different schemes.     

Activation as a Common Framework for Social Policies towards Lone Parents

This article compares recent social policy reforms in respect of lone-parent families in three different national contexts: France, the Netherlands and the UK. In all three countries there is an increasing focus on activation policies to promote employment among lone parents. The authors examine whether this common framework of activation has led to a policy convergence across these three countries.     

Cash‐for‐care payments in Europe: Changes in resource allocation

Resource allocation has been a main policy issue in cash‐for‐care schemes (CfCs) for older people in Europe since their inception. It regards how publicly funded care benefits and services are distributed among older people. The raising pressures of an ageing population and the tensions on the financial sustainability of welfare regimes in place have further exacerbated the relevance of this topic over the recent years. Nevertheless, comparative research so far has overlooked changes in resource allocation in CfCs over time. This article contributes to fill this gap, exploring changes in resource allocation of CfCs for older people in a sample of European countries—Austria, England, France, Germany, Italy, and The Netherlands—since the early '90s (or since the introduction of the scheme). It examines three analytical dimensions: (a) The mix of public services and benefits provided to older people (CfCs, community services in kind, residential care); (b) the level of CfCs coverage; and (c) its generosity. A combined view of these dimensions leads to the discussion of two dilemmas: How to allocate the resources devoted to CfCs in the light of the trade‐off between its coverage and intensity? And, within the whole long‐term care system, how to allocate resources between CfCs and services in kind?     

Social policy and poverty in post-totalitarian Europe

This article attempts to compare the social policy models of the west with social policies in post-totalitarian central and eastern Europe. It is argued that historical roots as well as recent developments make post-Communist social policy similar to the two major models in the west: the institutional redistributive model and the industrial achievement or performance model. The present problems of mass unemployment and growing poverty cannot be solved without a major reform of social policy, including state intervention and control. The residual social safety net and a strong market orientation are unlikely to be able to reduce poverty and unemployment. However, it is also argued that the strong role of the state and organized labour in both of these European welfare systems creates an obstacle to the future of social policy in the countries of central and eastern Europe. The state is viewed with great scepticism and organized mass social movements are weak in most of these countries. It will take time to develop such agents that can support the development of state social policy, and it may not even be accepted that the route of interventionist state welfare characteristic of western Europe is desirable.     

Choosing Welfare or Losing Social Citizenship? Citizens' Free Choice in Recent Italian Welfare State Reforms

In the past fifteen years, the Italian welfare state has gone through various important reforms. Almost all social policy fields have been significantly challenged by the presence of both national and European constraints, and in different policy fields some fundamental principles of the welfare state have been questioned and changed. The purpose of this article is to present an analysis of the most recent arguments used for welfare state reforms in Italy, focusing in particular on one key question: have the reforms been formulated and implemented in order to increase the freedom of choice of Italian citizens with respect to social protection? After a brief introduction and conceptual clarification, each section of the article will focus on one social policy field (employment, pensions, health care) and discuss the origins and consequences of the reforms with respect to the freedom of choice of citizens. The main argument is that very limited attention has been paid in the national political discourse and reform design to the freedom of choice for citizens in welfare state policies, since other goals (such as cost containment) were much more crucial. The article will end with an overall assessment of the evolution of freedom of choice in the Italian welfare state setting.     

From Social Instrument to Migration Management Tool: Assisted Voluntary Return Programmes – The Case of Belgium

The return of migrants to their country of origin and the development of efficient return measures have become more prominent on the political agenda of many Western European countries. Since policymakers prefer ‘voluntary’ return, governmental programmes to support the return of migrants – Assisted Voluntary Return (AVR) programmes – were developed as far back as the 1970s and have played an increasingly important role in migration policy over the last three decades. At the same time, general migration policy and welfare systems have undergone profound change, including in the meanings and connotations attached to social welfare, return support and return policy. This raises questions about the implications of these broader societal and policy changes for the widely implemented AVR programmes. In this article, we discuss the interpretation and evolution of AVR programmes by analyzing how one particular European country, Belgium, has developed its AVR programme over time. We explore the evolution of the programme's content, target group and institutional positioning, which shed light on its changing goals and are closely linked to a broader shift towards a ‘managerial’ approach to migration policy and the welfare state. We argue that return support may become decontextualized when it adopts ‘conditional entitlement’ as a central principle. This leads to strong differentiation, based on personal responsibility, between ‘deserving’ and ‘undeserving’ migrants, the levelling down of the support given to returnees, and a more coercive voluntary return policy in which social support is linked to deportation.     

Christian democracy, social democracy and the paradoxes of earnings-related social security

This article compares the retirement policies of Belgium and Sweden in order to reveal the different incentive structures built into the pensions systems prevailing in countries that are taken to represent different approaches to welfare capitalism. It addresses the question of why in a Christian Democratic welfare state that is said to grant pensions rights on the basis of merit and past work performance one can find extremely low labour-force participation rates among elderly workers, while in a Social Democratic welfare state that is supposed to grant pension rights relatively independent of past labour-market performance, one can find quite high participation rates amongst that section of the labour force. This apparent paradox is explained in terms of the different purposes of the early-retirement schemes in the two countries: in Belgium they were primarily part of a strategy to combat (youth) unemployment, in Sweden they had more to do with reforms that sought to accomplish a 'humanisation of work' by softening the abrupt transition from work into retirement.     

New Policy Spaces: The Impact of Devolution on Third Sector Policy in the UK

The development of third sector policy in the UK since 1997 has seen changes which have been of significance both for analysts and practitioners. This period has seen government engagement with and support for the sector extend far beyond the levels found throughout much of the last century. This has led to a growth in the size and scale of the sector and a closer involvement of sector representatives in political debate and policy planning. These changes have taken place at the same time as third sector policy has been devolved to the new administrations in Scotland, Wales and Northern Ireland. This article explores the impact of devolution on these policy developments and assesses the extent to which political devolution has led to policy divergence across the four countries in the UK. The conclusion is reached that policy devolution has created important new space for policy development for the third sector across the UK, but that the direction of travel in all four regimes has remained remarkably similar.     

The reform of the developmental welfare state in East Asia

This article examines social policy reforms in East Asia and whether the welfare states in the region became more inclusive in terms of social protection while maintaining their developmental credentials. It draws on findings from the United Nations Research Institute for Social Development (UNRISD) project on social policy in East Asia, covering China, Hong Kong Special Administrative Region of China, Japan, Malaysia, the Republic of Korea, Singapore, Taiwan Province of China, and Thailand. It shows that East Asian economies responded differently to the crisis in terms of welfare reform. While Singapore and Hong Kong maintained the basic structure of the selective developmental welfare state, Korea, Taiwan, and, to a lesser extent, Thailand implemented social policy reforms toward a more inclusive one. Despite such different responses, policy changes are explained by the proposition of the developmental welfare state: the instrumentality of social policy for economic development and realization of policy changes through democratization (or the lack of it).