Leaving the Nordic Path? The Changing Role of Danish Trade Unions in the Welfare Reform Process

For a long period, Denmark has been labeled a ‘model country’ with a comprehensive welfare state and a successful model of corporatist policy‐making. Danish unions are considered amongst the strongest in the world, and they have for a long time been a distinct part of the political system, and as social partners, they were strongly integrated into decision‐making processes. The analysis of the Danish welfare and labour market policy during the last two decades documents a profound change in the arrangement and in the status of the social partners (especially unions) in the Danish political system. The results show that two important pillars of the Danish model – the social partner basis and the collective trust in partnership – are eroding. Unions are no longer part of the law‐making process and, since 2007, they are formally excluded from the organization of the decision‐making process. Recent developments point at weaker unions that operate more as lobbyists instead of being strong corporatist institutions or part of the decision‐making process. The results of the study are thought‐provoking and the basis for a revised thinking of the Danish and the Nordic model.     

How to Design a "Liberal" Welfare State: A Comparison of Canada and the United States

My aim in this paper is to show how differences in the programmatic design of two otherwise "liberal" welfare regimes have generated substantially different patterns of welfare state retrenchment and distributive outcomes since the 1970s. Welfare regimes are distinguished by the principles and rules that regulate transactions between the three institutional nuclei from which individuals derive their "welfare" in modern capitalist societies—the state, the market, and the family. Liberal regimes are characterized by a preference for market solutions to welfare problems. While Canada and the United States both represent paradigmatic instances of the liberal regime type, there are long-standing differences in methods both of financing and distributing benefits. Differences in programme design led to substantially different retrenchment strategies from the end of the 1970s, which in turn produced dramatically different distributive outcomes: rising inequality and poverty rates in the United States compared to relative stability in the distribution of income among Canadian families.     

Labour Market Policy in the United States, Canada and Sweden: Addressing the Issue of Convergence

'Convergence theorists' suggest that domestic and/or global challenges and pressures are rendering welfare states broadly similar across national boundaries. 'Resilience theorists', in contrast, argue that a range of socio-political factors have allowed states to respond differentially to these pressures and maintain their distinct national social policy approaches. However, both research streams have addressed the 'welfare state' writ large in a multitude of nations and typically relied upon narrow, quantitative budgetary indicators. This study examines qualitative changes to key income security and social service programmes in one central social policy domain – labour market policy – in three nations, the United States, Canada and Sweden. It suggests that there is evidence of some degree of 'convergence' in the broadest sense of the term across these three nations. However, while both the USA and Canada have readily embraced genuinely neo-liberal restructuring, and become increasingly similar over the past two decades in this policy area, Sweden has managed to retain its distinctive social policy approach so far, despite notable changes, developments and trends. It also suggests that the character and direction of change may vary across and within policy domains in a single nation. The conclusion provides a discussion of universality, equality and solidarity, concepts that are commonly employed in accounts of welfare state change.     

Financial Incentives and Job‐search Training: Methods to Increase Labour Market Integration in Contemporary Welfare States?

In their efforts to increase labour market integration, contemporary welfare states emphasize the importance of financial incentives, active job‐searching and participation in labour market programmes. However, the effects of these policies have been minor and in some cases even inconsistent. The aim of this study was to examine whether and how financial incentives and job‐search training programmes increase re‐employment and the quality of re‐employment. A total of 1,015 unemployed persons participated in a Finnish follow‐up study with a randomized experimental design. Although no overall impact of job‐search training on re‐employment emerged, a positive effect was found for those groups of the unemployed who had a financial incentive to participate in the programme. Nevertheless, among unemployed workers with benefits at a minimum level there were no positive effects on the quality of re‐employment, and the impact decreased when unemployment was prolonged. Financial incentives and job‐search training appear to increase re‐employment among those of the unemployed who generally have better chances on the labour market, whereas these measures are not sufficient for the more disadvantaged groups of the unemployed.     

The Welfare State and the Life Course: Examining the Interrelationship between Welfare Arrangements and Inequality Dynamics

The transformation of welfare state arrangements in European countries during the last two decades can not only be described as realizing an activating welfare state, but also as centred on specific life course transitions which are considered as critical. A number of new welfare arrangements have been set up or older ones have been modified taking into account the critical phases of the life course. These new welfare arrangements attribute new rights over resources to well‐specified groups in terms of their life course events. The article first presents a selective overview of new welfare arrangements which are (in explicit or implicit ways) linked to specific phases and transitions of the life course in the different European countries; and, second, it analyzes the consequences of these new welfare arrangements on inequality. These arrangements establish (mostly implicitly) norms, which appear to define a role of an active, responsible and ‘able’ employee and citizen for everybody. However, the general starting positions of various groups of the population (such as women) and the existing welfare provisions constitute an obstacle to providing equal starting positions and an equal opportunity for pursuing one's life course according to the established norms. Therefore, the effects of these new welfare arrangements can have significant impacts on outcomes, and can therefore transform substantially the existing picture of inequalities.     

Straddling Two Continents: Social Policy and Welfare Politics in Turkey

There has been an increasing academic interest in understanding the dynamics of social policy in the Middle East and developing a conceptual ‘model’ to account for the particular characteristics of welfare arrangements in the countries of the region. While part of this framework, Turkey represents an exceptional case due to the Europeanization processes the country is undergoing in various policy areas, including social policy. The influence of the European Union on the shape of Turkish social policy, as illustrated by the government's recent reforms in the labour market and social security domains, is hereby used to outline the position of Turkey vis‐à‐vis both the Southern European welfare regime and the Middle Eastern pattern. This article seeks to assess the dynamics of Turkish social policy in light of the country's political, and socio‐economic dynamics, as well as the external influence exerted by the EU and international financial institutions. The aim is to examine Turkish welfare arrangements in a comparative manner and consider its suitability with reference to either of the two models. Looking at major trends in social security and the labour market, the article argues for a Turkish ‘hybrid’ model embodying the characteristics of both. Subject to EU explicit pressures for reform absent elsewhere in the Middle East, the data nevertheless show that Turkey has yet to make the qualitative leap forward that could place it firmly within the Southern European welfare group.     

A Bedrock of Support? Trends in Welfare State Attitudes in Sweden, 1981–2010

This article reports findings about Swedes' attitudes towards the welfare state from 1981 to 2010, building on data from the Swedish Welfare State Surveys. Attitudes towards social spending, willingness to pay taxes, attitudes towards collective financing and public organization, suspicion about welfare abuse, and trust in the task performance of the welfare state are tracked. Overall, there is a large degree of stability in attitudes, and where change is registered, it tends to go in the direction of increasing support. More people state their willingness to pay higher taxes for welfare policy purposes; more people want collective financing of welfare policies; and fewer people perceive extensive welfare abuse in 2010 than was the case in previous surveys. Class patterns change so that the salaried and the self‐employed become more similar to workers in their attitudes. Hence, the unprecedented election loss of the Swedish Social Democrats in 2010, and the rise of the Moderates (conservatives) as the dominant party cannot be explained by changing attitudes towards the welfare state. Nor can any corrosive effects from increased marketization of the Swedish welfare state on public support for welfare policies be detected.     

Class, Attitudes and the Welfare State: Sweden in Comparative Perspective

One of the most important arenas for contemporary class politics is the welfare state. In this article, attitudes towards welfare policies among different classes in Sweden are compared with other Western countries and over time. In the first part of the article, attitudes towards state intervention among different classes are compared across four Western countries: Sweden, Germany, Britain and the USA. The data come from the 1996 survey on “The Role of Government” conducted within the International Social Survey Programme. In the second part of the article, more detailed national data sets are used in order to track developments within Sweden from the early 1980s until 2002. Attitudes towards welfare spending, financing of welfare policies and service delivery are used to track developments of class differences in attitudes over time. It is concluded (a) that class differences are particularly large in Sweden, and (b) that changes over time indicate stability in overall class differences, combined with changes in attitudes among non‐manual employees. The implications of the results for recent arguments about the restructuring of class relations and the impact of welfare policies on stratification are discussed.     

Hybridization instead of Clustering: Transformation Processes of Welfare Policies in Central and Eastern Europe

Welfare state theories tend to use concepts of clustering for defining the affiliation of national social security systems to overarching worlds of welfare. A closer look at the transformation processes of welfare policies in Central and Eastern Europe shows a great variability among those countries in approximating their welfare states to Western European standards. In the design of their pension systems, their health care provision and their unemployment protection, Central and Eastern European Countries (CEEC) follow different reform paths. Welfare clusters in Western Europe are used as reference models, but no single example applies to all sectors of social security. Thus, a generalizing picture of welfare provision cannot be drawn for Central and Eastern Europe. Instead of constituting a new individual type of welfare arrangement, a hybridization process is observable.     

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.     

The Path-dependency of an Idea: Why Scandinavian Welfare States Remain Distinct

Examining reforms that have taken place in the 1990s, this article explores the hypothesis that the most distinctive characteristic of the Scandinavian model today is the “stickiness” of its reputation, rather than the institutions and policies that make up the model. Borrowing the concept of path‐dependency from institutional analysis, the article argues that because there is a strong commitment to the idea of a Scandinavian model, there is a tendency to expand conceptions of the model so that policy changes appear to be consistent with it.     

Slippery Concepts, Shifting Context: (National) States and Welfare in the Veit-Wilson/Atherton Debate

The debate between Veit‐Wilson and Atherton raises key conceptual questions for the analysis of welfare states. Veit‐Wilson, in particular, focuses on the important, but strangely neglected question of when and why a state qualifies as a welfare state. Atherton usefully draws attention to historical debates about the legitimate purposes of state welfare policies and worthy recipients of state benefits, particularly in the Anglo‐Saxon countries. His contribution may draw our attention to the shifting meaning of concepts (such as poverty) over time. In this contribution I seek to broaden the debate. First, without underestimating the importance of such criteria, rather than presenting one single (normatively based) “discriminating criterion” defining welfare statehood, I argue that other conceptions of “the welfare state” may be useful as well—so long as analysts are clear and explicit about how they are using the phrase. Second, in the current conjuncture of the perceived “transformation” perhaps even “destruction” of the welfare state, historical and comparative research grounded on clear and explicit concepts is crucial.     

Partisan Effects on Welfare State Retrenchment: Empirical Evidence from a Measurement of Government Intentions

The effect of partisanship is disputed in the literature on welfare state retrenchment. The ‘new politics’ school argues that partisan conflicts are irrelevant to the understanding of retrenchment, but the second generation of retrenchment research concludes that such conflicts are still important. We engage in this debate by introducing a new empirical approach. Our method provides a necessary but currently missing link in the second generation of retrenchment studies which theorize on the input side of welfare state reform but conduct empirical studies on the output side. Our empirical approach entails a new type of data, compiled on the basis of content analysis of adopted laws, and we analyze the intentions pursued by incumbent governments in social policy‐making. Based on an empirical study, we find partisan effects in programmes protecting against social risks that are disproportionally distributed among social strata.     

Discourse, Learning and Welfare State Change: The Case of German Labour Market Reforms

In this article we argue that Germany has significantly changed its approach to labour market policies (LMPs) during the past decade; in many instances Britain has served as a model to learn from. In a first step, we identify the core institutional arrangements of the conservative approach to LMP in Germany and contrast them with the liberal approach, using the UK as an example. Secondly, we trace the development and nature of changes in German LMP since the 1990s. We show that the policy has increasingly incorporated elements of, and to a considerable extent shifted towards, a liberal approach. Thirdly, we review competing theoretical approaches that might explain this turn in LMP and conclude that changed interpretative patterns have been crucial to understand the overall shift. Fourthly, utilizing the policy transfer framework, we show that in regards to the specific policy instruments German policy‐makers have learnt from the experiences in the UK.     

Activation and Local Welfare in Italy: Trends and Issues

This article deals with the development of local welfare in Italy and is grounded on a research project focusing on activation as a main feature of change in Italian social policies. Along with decentralization processes, many Italian regions have been acting as policy laboratories, developing and testing very different approaches according to their political attitude. On the one hand this results in a fragmented policy landscape which is difficult to recompose, and, moreover, in growing inequalities in the Italian welfare system. On the other hand, it opens opportunities for experimentation on institutional and organizational structures on a regional scale, creating a variety of practices for research and policy analysis. In the article we first describe the main trends in national social policies, with a specific focus on the dynamics of change referring to activation. We will then focus on a pilot programme which is aiming at the promotion and implementation of innovative practices in health and social care services in Friuli‐Venezia Giulia, a region in which there is a significant orientation towards enhancing social citizenship and enforcing the central position of the public actor. We investigate how the dynamics of territorialization and personalization, implied by the programme, trigger specific logics and practices of activation. Finally, referring to this case study, we propose an analytical overview of some relevant issues in the development of ‘local active welfare’ in Italy.     

Activation,Public Employment Services and their Clients: The Role of Social Class in a Continental Welfare State

This article fills a gap in the existing literature by investigating how public employment service (PES) staff actually deal with their clients under a continental regime of activation. The results reported here are based on interviews both with PES staff and their unemployed clients in Germany. We argue that due to its Bismarckian origins as an insurance‐based system of ‘unemployment protection’, Germany's system of unemployment compensation is attractive not only for the marginalized, but also for core workers. As a result, PES staff deal with clients from very heterogeneous class backgrounds. We demonstrate that social class is a significant factor in client outcomes, and that earlier research has perhaps overemphasized the role of frontline staff as ‘street‐level bureaucrats’. While staff do have considerable power, the result of the encounters between the administration and clients also depends on the capabilities of the clients, which, in turn, are strongly related to social class.     

The Role of Distributional Coalitions in Welfare Regimes: Chile, Costa Rica and El Salvador

Do social policies in Latin America promote or discourage distribution? And if they do promote distribution, are coalitions a prerequisite? Drawing from a typology of welfare regimes elaborated for 18 Latin American countries, this article explores responses to these questions by addressing three emblematic cases: Chile, Costa Rica and El Salvador – that is, countries where the management of social risks primarily revolves around markets, states and families, respectively. Although the article is exploratory, findings suggest that societal coalitions have been, and are likely to continue to be, weak in market welfare regimes, strong in state welfare regimes and contingent to policy sectors in familialistic welfare regimes.     

The Politics of Welfare State Retrenchment: A Literature Review

Welfare state retrenchment is widely seen as a highly unpopular endeavour and, therefore, as politically difficult to pursue. This assumption has underpinned most of the political science research on this issue, notably Paul Pierson's seminal contributions about the ‘new politics of the welfare state’. Yet, the question remains why and under what circumstances cutbacks take place in highly developed welfare states despite these formidable political obstacles. This article reviews the literature on the politics of retrenchment, namely on the impact of socio‐economic problem pressure, political parties, political institutions, welfare state structures and ideas. Most authors agree that socio‐economic problems – particularly domestic problems – contribute to an atmosphere of ‘permanent austerity’ which inspires cutbacks. Moreover, according to most scholars, the extent of retrenchment possible depends on the specific institutional configuration of a political system and the path dependence of existing welfare state structures. The debate on the relevance of political parties and ideas, by contrast, is still far from settled. Further unresolved issues include the nature of the dependent variable in retrenchment studies. Also, the exact motives for cutbacks are theoretically still little understood, as are the political mechanisms through which they are realized. I argue that, because of the nature of these persisting issues, the pluralistic dialogue between different methods and approaches – as well as their combination – remains the most promising way forward in the study of welfare state politics.     

Programme Effectiveness in Activating Welfare Recipients to Work: The Case of Hong Kong

Some theories and research based on data in the West have implied the effectiveness of measures using the work-first approach, human capital development, community work experience, and financial incentives to promote welfare recipients’ transition from welfare to work. Nevertheless, the generality of the implication does not hold without examining the effectiveness in a non-Western setting. The present study thus employs survey data from 1,240 welfare recipients in Hong Kong to investigate the effectiveness of various measures for raising the recipients’ work motivation and diminishing their welfare dependency. The measures examined include the Intensive Employment Assistance Project (IEAP), Community Work (CW) Programme and Disregarded Earnings (DE) arrangements. Findings reveal the effectiveness of these three measures. Particularly, help received from various services of the IEAP was the principal factor in the effectiveness of the IEAP and the IEAP was effective for welfare recipients who were older or less skilled. The findings thus offer support to the generality of the claim about the effectiveness of welfare-to-work programmes.     

Black‐market Medicine and Public Opinion Towards the Welfare State: Evidence from Israel

Based on a survey and interviews, this article presents and analyses Israeli public opinion toward black‐market medicine (BMM) and the welfare state. In addition to providing quantitative and qualitative evidence of the existence of under‐the‐table payments in Israel, we suggest various insights into this phenomenon. While most citizens admit that they would consider making under‐the‐table payments in order to receive preferential medical treatment, when the questions mention words such as ‘illegal’ or ‘bribe’, respondents tend to be less tolerant of such activities. We find that, first, there is a basic willingness among Israeli citizens to use BMM. Second, despite this predilection, Israeli citizens are reluctant to articulate their willingness to engage in such illegal activities. This reluctance implies the existence of a moral barrier among the population as far as identifying themselves with illegal behaviour is concerned. We may infer the existence of a gap between declared attitudes and behaviour. Third, the fact that people's willingness to engage in BMM is greater than their willingness to adopt black‐market strategies in other areas signifies the special nature of health care. Finally, by connecting the phenomenon of BMM to public opinion regarding the welfare state, we point to a possible gap between normative attitudes and preferences produced by structural conditions.