FROM HARVESTER TO DE-REGULATION: WAGE EARNERS IN THE AUSTRALIAN WELFARE STATE

The significance of the Harvester Judgment in 1907 was not only in the establishment of a ‘fair and reasonable’ wage, which became known as the basic wage , but also in the principle that wages had to meet at least the basic social needs of the worker's family. Income earned through employment was thus regarded as primary welfare . These principles in wage determination were discarded in the 1960s and the de-regulation policies of the 1980s further increased the division between employment and social needs. Exacerbated by the endemic high levels of unemployment, the progressive de-regulation of the labour marked since the 1980s has been one of the most significant causative factors in the growing inequality in Australia.     

'Sifting the Wheat from the Chaff': A Two-dimensional Discriminant Analysis of Welfare State Regime Theory

Welfare state modelling has long been an important strand within comparative social policy. However, since the publication of Esping‐Andersen's ‘Worlds of Welfare’ typology, welfare state classification has become particularly prominent and a multitude of competing typologies and taxonomies have emerged. Each of these is based on different classification criteria, and each is trying to capture what a welfare state actually does. The result is that the literature is in a state of confusion and inertia as it is unclear which of these rival systems is currently the most accurate and should be taken forward, and which are not and should perhaps be left behind. This article extends Bonoli's two‐dimensional analysis of welfare state regimes by using multivariate analysis of variance and discriminant analysis to compare and contrast the various classifications on universal criteria. It also examines the usefulness of the two‐dimensional approach itself and suggests how it can be enhanced to benefit future attempts at holistic welfare state modelling. The article concludes that there are some welfare state classifications that are more useful than others, especially in terms of reflecting a two‐dimensional analysis: it thereby ‘sifts the wheat from the chaff’ in terms of welfare state regime theory.     

Does Welfare Participation Affect Women's Wages?*

Objectives. This study examines how welfare participation and employment affect women's wages. Methods. We use longitudinal data from the 1996 Survey of Income and Program Participation and fixed‐effects regression models to test our hypotheses. Results. Our results indicate that time spent on welfare while unemployed results in a wage penalty that is similar to the penalty associated with nonwelfare work breaks. Time spent on welfare while employed has no effect on wages, unlike the strong positive impact of nonwelfare work periods. Conclusions. Working while on welfare does appear to prevent further wage deterioration, but does not lead to substantial wage growth.     

Welfare through Work: An Audit of Occupational Social Provision at the Turn of the New Century

Occupational welfare has been a relatively neglected area in both theoretical and empirical studies of the welfare state despite its importance to overall levels of social provision. Surprisingly, there has not yet been a comprehensive examination of British occupational social provision, as opposed to non‐wage benefits more generally or specific provision such as pensions, housing or childcare. This neglect can be explained both by the perception that occupational welfare plays a relatively insignificant role in contemporary welfare states and by a general lack of clarity regarding its definition and scope, factors which have added to the difficulties surrounding its conceptualization and measurement. Despite the lack of attention it has received, however, recent pressures have propelled the issue higher up the social policy agenda, increasing the need for a clearer conception of what constitutes occupational social provision and a more comprehensive assessment of its contemporary significance. This paper seeks to shed some light on to these areas by drawing on comparative and UK data in order to carry out an audit of occupational social provision.     

Making ends meet: perceptions of poverty in Sweden

During the era after the Second World War, Sweden has built a welfare system based on labor market participation and income maintenance. Low unemployment and decent wages are supposed to guarantee people a labor market income or income maintenance, which in turn should provide a proper standard for everyone. However, a rapid increase in unemployment and economic problems have made the future of the Swedish welfare state more uncertain than ever. These circumstances have, among other things, led to the suggestion that Sweden should abandon the income maintenance policy and create a social policy system with the more limited ambition of guaranteeing everyone a minimum income. In that case, one central question must be answered: what constitutes a decent minimum income in today's Sweden? Where should we draw the poverty line under which people will not be forced to live? These questions are central in the current debate. The consensual poverty line method is used in this article to derive a poverty line relevant for today's Sweden. The results shows that more than every fifth household has an income below the consensual poverty line. That is, they have an income that most Swedes would argue is too low to make ends meet. The level of the consensual poverty line was compared with the National Board of Health and Welfare's guidelines for social assistance. The consensual poverty line was shown to be more generous to small households and the norm for social assistance was more generous to larger households. Finally, the expenditure for guaranteeing all Swedish household a minimum income equal to the consensual poverty line was estimated: more than SEK 25 billion per year. The results in the article casts serious doubt on the ability of the Swedish welfare state to secure a decent income to all citizens.     

Protective legislation: The “third pillar” of the welfare state

Welfare states are built upon three central social policy pillars: (1) income programs, including an assortment of income maintenance and security benefits; (2) social services, comprising a diverse constellation of provisions, which furnish care such as health care and education, and “in kind” benefits; and (3) protective legislation, encompassing a dense web of proactive and preventative laws, rights, and entitlements, such as health and safety legislation, minimum wage laws, child protection acts, rent controls, and laws governing evictions and foreclosures. Despite its centrality to the welfare state and to our well‐being, this third pillar has received considerably less attention in comparative social policy research. The dominant welfare state typologies have focused almost exclusively upon income measures and, more recently, on social services, to construct their welfare state categories or “worlds” of welfare while largely neglecting this crucial third pillar. A greater focus on protective welfare legislation can help sharpen the distinctions among welfare states within and across the welfare worlds, which is particularly valuable in light of the ongoing erosion of the other two pillars over the past few decades.     

The Development of State Welfare in the Asian NICs with Special Reference to Taiwan

This paper explores Taiwan's welfare development from its specific politico-economic situation. Although education and public health are well developed in Taiwan and social insurance is expanding to cover more and more Taiwanese people, the govenmental welfare effort is still too low to meet the welfare needs of the public. This is especially so given our discovery that military servicemen and related groups receive over 70% of the welfare expenditure of the central government while the disadvantaged receive only around 3%. Furthermore, political crises are often accompanied by a significant growth in social expenditure, implying that the purpose of state welfare is to maintain the stability of the Taiwanese state rather than to protect the well-being of Taiwanese people. Political isolation forces the Kuomintang (KMT) to secure Taiwan's role in the international community via economic growth. The development of state welfare cannot be allowed to have a negative effect on this highest priority. The limited resources, therefore, are allocated to economic goals as well as to the KMT–state apparatus in order to keep the KMT in power. However, the democratization of Taiwanese politics since the 1980s has forced the KMT to consolidate its legitimacy from the people and the improvement of social welfare is one measure for this purpose. Whether or not Taiwan becomes a Western-style welfare state through the expansion of state welfare in the near future, it furnishes a useful example with which to examine existing welfare theories.     

The State and its Welfare State: How do Welfare State Changes Affect the Make‐up of the Nation State?

With respect to changes in the welfare states of OECD countries, scholars most of the time are looking for common trends; that is, they look for similar movements in different states, such as welfare state retrenchment, recalibration, etc. As we show in this article, data on welfare state spending and financing do not, however, support such stark tendencies like retrenchment. We therefore suggest looking for corridor effects rather than level effects, i.e. analysing changes in the dispersion of welfare state regimes rather than shifts in the mean values. Our analysis suggests that convergence, i.e. decreasing diversity among states in spending, financing and regulation patterns, may have been the most important pattern of welfare state change in the last three decades – a pattern easily overlooked in past and current research. Convergence of welfare state regimes also affects our views on the modern nation state itself since the varieties of welfare capitalism in the twentieth century are themselves an expression of the sovereignty and autonomy of the nation state. If nation states are forced to surrender national particularities, to mellow their characteristic differences and to move incrementally towards a one‐size‐fits‐all common model via ‘shrinking corridors’, such a blurring of welfare regimes, such a beclouding of difference, should also be regarded as a significant change taking place in the centre of the Western nation state's make‐up.     

The economic consequences of the welfare state

What are the economic and employment consequences of larger social insurance programmes? Are larger welfare states diverting resources from economic activity and distorting the investment decisions of firms? I examine theoretical and empirical research on the economic consequences of the welfare state. This review shows that the predictions of a negative relationship between higher levels of social protection and growth have not been borne out in the data. Both insurance programmes and other policies that increase investment in human capital or the overall productivity of workers generate important economic externalities that outweigh the potentially distortionary effects of higher taxes. Empirical studies also fail to uncover a consistent negative relationship between larger welfare states and the level of employment. The employment consequences of the welfare state are mediated by existing institutions and policies—such as the level of centralization of the wage bargaining system—which affect the redistribution of the costs of higher taxes among workers and firms. As a result, the employment consequences of larger welfare states are non-linear.     

From Enlightened Self‐interest to Welfare Coalitions: Overcoming Identity‐based Tensions in the Israeli Welfare State

A common argument in the social policy literature is that ethnic and identity‐based heterogeneity undermines the welfare state. In part, this happens because of difficulties in the generation of broad social solidarity in diverse societies: solidarity which is allegedly necessary for sustaining public support for the welfare state. This study explores this argument's logic in the context of welfare state politics in Israel. Israel would appear to be a near‐perfect example of how heterogeneity strains social solidarity and, in turn, undermines the welfare state. Quite differently from most studies, however, this work's emphasis is not on public attitudes or voting, but on the political interaction between economically disadvantaged identity‐based minorities – specifically Arabs on the one hand and religious Jews on the other – in the welfare field. It is argued that shared interests enable extensive co‐operation among political elites in the welfare field despite religiously‐ and nationally‐based antagonism.     

The “Exceptional”United States: First New Nation or Last Welfare State?

The author discusses the American welfare state in the context of Lash and Urry's thesis on ‘disorganized capitalism’. Attention is directed to the claim that the US welfare state has been the laggard of organized capitalism but is becoming the pathbreaker in defining patterns of public welfare provision under an increasingly disorganized capitalism. In this context the US may be “showing the way” to the welfare states of Western Europe. A number of claims about the “exceptional” nature of US development are reviewed and a number of reservations are entered against the “disorganization” thesis as applied to the welfare state. It is suggested that attention should be focussed upon contemporary patterns of welfare state re-organization rather than dis-organization.     

Public opinion towards workfare policies in Europe: Polarisation of attitudes in times of austerity?

Increasing wage inequality, strong labour market divides and welfare retrenchment are widely believed to result in more polarised public opinion towards the welfare state. The present study examined if attitudes towards workfare policies have become more polarised in Europe over recent decades. To achieve this aim, the study analysed public opinion data from the European Value Study (EVS) from 23 European countries in the years 1990–2008, using multi‐level regression analysis. It is found that individuals who are most affected by workfare – the unemployed, the poor and the young – most strongly oppose workfare concepts. Against expectations, there was no evidence of an increasing polarisation of attitudes in Europe. Attitudinal cleavages based on employment status, income and education have remained stable. Differences between age groups have even dissolved because younger cohorts increasingly favour strict workfare policies. The results suggest that warnings of increasing social conflicts and an erosion of solidarity in European societies are exaggerated.     

Learning to love (the state) again? Money,legitimacy and community sector politics

The erosion and dismantling of the post‐war welfare settlement has entailed an expanded role for the community sector, as a complex ‘mixed economy of service provision’ has developed. Critiques from both right and left have undermined the legitimacy of a statist model of welfare; state funding of non‐government community organisations is one aspect of the move away from centralised delivery. Despite their important role in this process, the distinctive perspectives of community sector organisations are rarely considered in broader theoretical and political debates. These organisations face significant dilemmas in struggling to maintain their viability and independence. Analysis of three major arguments for funding shows how organisations challenge the state's legitimacy by insisting on their own independent role but precariously rely on traditional sources of welfare state funding. This analysis draws into question the possibility of satisfactory non‐statist theories of welfare. It also suggests that the community sector might need to reposition itself as part of a broader public system of welfare, rather than in opposition to government, but that this strategy entails obvious risks for organisations' independence.     

Levels or worlds of welfare? Assessing social rights and social stratification in Northern and Southern countries

Since Esping‐Andersen's Three Worlds, it has become a truism of welfare state research that welfare states do not vary linearly along a single dimension but have to be conceptualized as multidimensional phenomena that cluster into types caused by the political economy of class coalitions. However, when moving beyond the 18 original countries of Esping‐Andersen's analysis, the situation is less clear. Although additional worlds have been identified in the Global North and the Global South, these are usually not conceptualized along the same dimensions as the original three worlds and are rarely empirically compared with them. This paper tackles these omissions by explicitly comparing Northern and Southern countries within Esping‐Andersen's framework. It poses the question whether the central insight of welfare state research, namely, that there are not just gradual differences between welfare states, but different types with qualitative differences, expands beyond classic welfare states. Based on newly generated data on social rights and social stratification, we employ cluster analysis with 45 Northern and Southern countries. This analysis produces mixed results. We do find different types of welfare states with qualitative differences, but these do not fully correspond to Esping‐Andersen's Three Worlds. Moreover, our findings also point to a conceptual issue in welfare regime research: regimes are not just defined and measured in terms of different logics of welfare provision but also take into account degrees of welfare stateism. We argue that this issue is poised to become ever more pressing with the geographical expansion of welfare state research.     

From Pavement to Piazza: Grassroots Social Work to Counteract the Globalization of Marginality

This paper—inspired by the experience of grassroots social work in Naples begun by M. Borrelli in the 1950s—emphasizes that “consciousness‐raising” and “community development” can be useful processes to stimulate responsible social participation on the part of the most marginal individuals and groups. To overcome a bureaucratic and pietistic model of the welfare state which serves in the long run to increase their dependence and socio‐cultural subordination, there is a need for alternative social policies, capable of improving people's empowerment and social citizenship. Giving more resources and decision‐making power to the most marginal could amount to changing an unfair and oppressive society from the roots up. This goal remains a moral imperative for both professional and voluntary social workers who believe in a fair, non‐violent and ecological model of development. Unfortunately, in Italy as elsewhere, neo‐liberal reforms of welfare states are tending in the opposite direction, partly as a result of out‐of‐date functionalist theories and by means of a worrying process of welfare marketization and globalization that actually increases the exclusion and marginality of the lower classes. This paper takes issue with current neo‐liberal trends by returning to a territory‐based and resident‐focused image of social work. This way, non‐profit agencies can play a more active and stimulating role in support of communitarian networks and help avoid the risk of the Third Sector's alternative spur being compromised by the otherwise “commodification” of welfare. Only in this way might one stop the transformation of non‐profit organizations into mere private providers for a buyer/controller state, more business‐minded than really concerned with freeing the poor and the marginal “underclass” from subordination and exclusion.     

Has the Nordic Welfare Model Been Transformed?

The Nordic welfare model is undergoing a fundamental transformation. Using Denmark we show how a universal welfare state model is gradually being transformed into an emergent multi‐tiered welfare state. Whereas the Danish pension system's having become multi‐tiered in the 1990s, with private schemes – collective and individual – supplementing public schemes is well documented, scant attention has focused on more recent developments in other areas of the welfare state. This article shows how the multi‐tiered welfare state spread in the 2000s to policies for families, the unemployed and the sick. Although Denmark still offers universal coverage in core welfare state areas, the increased use of occupational and fiscal welfare as well as changes in public schemes has gradually transformed the nation into a multi‐tiered welfare state that is more dualistic and individualistic, with participation in the labour market becoming still more important for entitlement to benefits. These profound changes have taken place in such a way that although core characteristics are still in place, new structures and understandings of the welfare state are also developing. Thus classical typologies need revision, so that they include more focus on this combination of universality and institutional attachment to the labour market. Moreover, measures of what welfare comprises should include not only public but also private elements.     

Convergence of family policy across welfare regimes (1990 to 2010): Different connotations of family policy expansion

Using multiple indices of family policy efforts – work/family reconciliation, gender equality and income protection, this study offers a nuanced understanding of family policy expansion in 14 OECD countries across three welfare regimes from 1990 to 2010. Findings suggest an overall convergence of family policies, particularly in gender equality and work/family reconciliation. Convergence has occurred simultaneously with distinctive family policy changes across welfare regimes. Conservative welfare states have experienced the most profound family policy alterations, shifting from a traditional gender model to one that encourages women's employment, but have, nevertheless, maintained policy efforts that sustain the traditional gender role. Despite an increase in their family policy efforts, liberal welfare states have continued to maintain minimal state action regarding family policy. Changes in social democratic welfare states have been less substantial, as they seem to continue to pursue a dual‐earner model with high degree of gender equality and work/family reconciliation.     

Your position in society matters for how happy you are

This article shows that people's perception of their position in society is strongly correlated with their level of happiness, and thus that differences in happiness levels among countries in different welfare state clusters are influenced by people's perceptions of their relative position in society (subjective position). The study drew on data from the European Social Survey. Two important findings emerged from the analysis. First, an individual's subjective position in society is a more important predictor of happiness than objective measures such as income, education and labour market position. Second, the link between individuals’ perceived position in society and their level of happiness is moderated by the welfare state. In the Nordic countries, people's perceptions of their position in society have less influence on happiness whereas in Eastern European countries we found a strong connection between subjective position and happiness.     

Social support in single parents' transition from welfare to work: Analysis of qualitative findings1

Cook KE. Social support in single parents' transition from welfare to work: Analysis of qualitative findings Since 1995, single parents have been required to participate in welfare‐to‐work activities. While quantitative meta‐analyses have consolidated the social and economic impacts of such transitions, no attempt has yet been made to synthesise the qualitative evidence. In this article, I offer an analysis of 16 qualitative articles that explore the role of social support in the lives of single mothers making the transition from welfare to work. By focusing on the functions and reciprocal nature of social support, this study examined how welfare‐to‐work programmes shift women's dependence from the state onto family and friends, many of whom are in similarly impoverished situations and/or are unable to provide adequate support. Furthermore, women are often required to reciprocate the support they receive, which creates additional barriers to a successful welfare‐to‐work transition.     

The retrenchment of public pension provision in the liberal world of welfare during the age of austerity—and its unexpected reversal, 1980–2017

Pension system adaption during the “age of austerity” since 1980 is expected to vary between industrialized countries broadly in line with their membership of conservative, liberal, or social democratic worlds of welfare. Empirical testing on the liberal world focuses on the later period and differs in its conclusions. This paper is based on a systematic study of the scale, nature, and trajectory of change in six liberal pension systems between 1980 and 2017 using expenditure, economic, demographic, and social rights data. These data are analysed using a framework developed through critical engagement with Pierson's three welfare state change criteria and the welfare state “dependent variable problem.” The paper finds a significant retrenchment of public pension provision in most liberal welfare states after 1980 but largely during the first half of the period. This has been partly reversed in most countries since the mid‐1990s, though the scale of this reversal varies between countries. The recent rise of the state in liberal systems has been noted by some commentators, but to be properly understood, the paper argues, it must be considered in the context of the significant retrenchment, which preceded it. There is a scope especially for research on the broader social context of recent reforms, particularly how middle‐income groups were affected by retrenchment and how recent reforms have mitigated this.