Comparing Formal Unemployment Compensation Systems in 15 OECD Countries

This study contributes to the welfare regime literature by analyzing unemployment compensation programmes – unemployment insurance (UI)/assistance (UA) programmes and redundancy pay schemes – of welfare state/occupational welfare regimes. It covers 15 countries of the Organisation for Economic Co‐operation and Development (OECD) selected from Southern European, Liberal, Continental‐corporatist and Social Democratic country clusters. In contrast to the common argument that Southern European countries have underdeveloped formal unemployment compensation systems, this study argues that they (especially in Spain, Portugal, and to some extent Italy) are comparable in strength to those in Continental‐corporatist countries if occupational welfare programmes – notably redundancy pay – are considered alongside welfare state programmes for unemployment protection. The study also outlines the characteristics of redundancy pay schemes in the four country clusters and shows how different redundancy pay schemes are linked to UI/UA schemes in these clusters.     

Continental Drift: On Unemployment Policy Change in Bismarckian Welfare States

This article analyses the development of unemployment policies over the past 20 years in four continental European countries: Belgium, France, Germany and the Netherlands. It shows that, far from being as ‘frozen’ as many analysts have suggested, each of these Bismarckian welfare states has in fact seen considerable change in this policy sector in recent decades. In Belgium, France and Germany, significant changes in unemployment policy reforms have unfolded gradually, through an accumulation of small changes. This finding offers some support to recent theorizing on the potential for policy changes that are both incremental and transformative. However, while such processes have led to shifts in unemployment policy that are far from negligible, the article also argues that they fall short of those seen in this policy sector in other welfare institutional contexts as well as in the Netherlands, where substantive reforms have in the last decade been complemented with changes to the institutional framework for unemployment policy. Through its analysis of the relationship between the institutional features of these welfare states and the possibility frontier of unemployment policy reform, the article develops a nuanced perspective on the scope for and resistance to social policy change in continental Europe.     

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.     

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.     

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.     

Mending Nets in the South: Anti-poverty Policies in Greece, Italy, Portugal and Spain

The marginal role of social assistance and the absence of minimum income programmes have long been thought to constitute defining characteristics of the southern European model of welfare. Nevertheless, over the 1990s significant innovations in this field have taken place. The paper aims to contribute to the analysis of recent developments by critically examining the experience of anti‐poverty policies in Greece, Italy, Portugal and Spain. It is argued that the “patchiness” of safety nets in southern Europe is due to a unique set of constraints, the most relevant of which are the role of families and the “softness” of state institutions. A review of national profiles reveals that new policies introduced in all four countries mark progress towards redressing some of the historical imbalances of that welfare model. In particular, fully fledged minimum income schemes now operate in Portugal and in certain Spanish regions, while an experiment involving a number of Italian municipalities is still in progress. In spite of this, the paper concludes that social safety nets in southern Europe remain frail in terms of institutional design as well as political support and legitimacy.     

The politics of safety net reform in Southern Europe during the Great Recession: Introduction to the regional issue

Southern European welfare states have developed relatively solid social insurance income maintenance programs, but have lacked effective means-tested benefit systems to address poverty and protect outsiders. Spain and Portugal are usually considered the two first countries to depart from the traditional path with the creation of minimum income schemes between 1988 and 1995. In the Spanish case, minimum income programs were established at the regional level and are very heterogeneous despite their institutional stability. The limited extent of these programs in most Spanish regions must be put in the context of national means-tested income support schemes in the fields of pensions and unemployment. The introduction of these programs in the 1980s was also a significant path departure. The combination of these programs has offered some income support to low income groups left unprotected by traditional insurance benefits, although in a patchy and limited way, especially as regards the working-age population. The social effects of the Great Recession, especially in terms of long-term unemployment, evictions and impoverishment, have reopened the debate on how to combat monetary poverty, which has been on the general election agenda since 2014–2015. Most regions have reformed their programs in different directions since 2008, under the contradictory pressures of growing demand and financial constraints. Such debate, however, has not been able yet to set a clear basis for a new development of anti-poverty income support policy.     

Mandatory occupational welfare: Severance pay as an unemployment compensation instrument

This study focuses on the conceptual and empirical development of severance pay (SP)/redundancy pay schemes established through centralized collective agreements (in Nordic countries) and legislation for unemployment compensation. It argues that these “mandatory” occupational welfare benefits have been neglected in social policy debates due to the ambiguity in their conceptualization, overemphasis on their cost implications, and the nonrecognition of their redistributive effects. The study offers quantitative indicators to analyse SPsapos; redistributive structure (coverage, generosity, and benefit equality) during the Global Recession in Canada, the United Kingdom, Australia, Ireland, France, Germany, Austria, Spain, Portugal, Denmark, and Sweden. The findings demonstrate that SP schemes possess distinctive elements in Southern European, Continental European, Anglo-Saxon, and Nordic clusters. The indicators are also used to analyse the interplay between these schemes and unemployment insurance/assistance in these clusters.     

Back to Work after Incapacity Benefit: Differences between Ethnic Minority and Native Dutch Workers

Contemporary pleas for an activating welfare state and social security system emphasize that getting benefit claimants back to work is more important than providing income compensation for social risks connected with unemployment or illness. The Dutch system of incapacity benefits, however, is far removed from this normative ideal of a proactive social security system. Resumption of work after a spell of incapacity benefit is the exception rather than the rule. This article examines possible ethnic differences in resumption of work following incapacity benefit. We use a unique register data file from Statistics Netherlands that contains information about all incapacity benefit claimants in the Netherlands in 1999. In the analysis we follow these benefit claimants for three years and examine what their labour market position was in 2002. We find that resumption of work after incapacity benefit is even more the exception for migrant workers with a Turkish or Moroccan ethnic background. Contrary to our assumption, this difference from native Dutch workers cannot be explained by unfavourable personal characteristics of Turkish or Moroccan benefit claimants – their personal characteristics (gender, age, low educational level) appear to be rather favourable for resumption of work. In the current literature, these differences in outcomes between ethnic groups are often attributed to certain ‘ethnic‐specific’ or cultural factors. This article argues that we should be careful of explaining different outcomes between ethnic groups by (alleged) cultural phenomena. There are other explanations possible such as differences in work motivation, lack of ‘transition facilities’ in companies and differential treatment by employers or social security officials.     

The welfare state in liquidation?

This paper is about the most recent reforms of cash benefit systems and the sociopolitical debate in eight European countries. The welfare state and the social security system rank high on the political agenda. After many years of economic crisis, with increasingly widespread unemployment and changed family patterns, the welfare system that developed in most western European countries since the end of the Second World War is the focus of attention. In a world of increasing international trade, with competition from countries — in eastern Europe and Asia as well as the United States — which have not developed such comprehensive systems of social security, one of the main issues in the debate is whether western Europe can afford to maintain welfare at the existing level, or whether it is necessary to make fundamental changes. But the discussion also centres on what can be called the welfare state's own internal problems.     

Youth, unemployment and political marginalisation

The article investigates the impact of being unemployed on political marginalisation among young people. Are unemployed youth politically marginalised compared with employed youth? Is the impact of unemployment on political marginalisation related to the development of the welfare state? Based on Marshall’s concept of social citizenry, and Esping‐Andersen’s theory of decommodification politics, the impact of unemployment on political marginalisation was expected to be least in the most‐developed welfare states. In these countries, welfare policies were expected to counteract marginalisation among the unemployed. The analyses were based on the Eurobarometer survey Young Europeans from 1990. Three aspects of political marginalisation were investigated: political confidence, political interest and political extremism. Unemployed youth express less confidence in politics, they talk less about politics and they more frequently support revolutionary political ideas, compared with employed youth. The greatest difference in political confidence between unemployed and employed is found in Great Britain, while Italy represents a deviant case where the unemployed have more confidence than the employed. The development of the welfare state does not appear to be a crucial factor for political confidence among the unemployed.     

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.     

New challenges for the welfare state: The emergence of youth unemployment regimes in Europe?

In this article we discuss the emergence of ‘youth unemployment regimes’ in Europe, that is, a set of coherent measures and policies aimed at providing state responses to the problem of unemployment and, more specifically, youth unemployment. We classify these measures and policies along two main dimensions: unemployment regulations and labour market regulations. Using original data, we show how seven European countries locate on these two dimensions as well as within the conceptual space resulting from the combination of the two dimensions. Our findings show cross‐national variations that do not fit the traditional typologies of comparative welfare studies. At the same time, however, the findings allow for reflecting upon possible patterns of convergence across European countries. In particular, we show some important similarities in terms of flexible labour market regulations. In this regard, the recent years have witnessed a trend towards a flexibilisation of the labour market, regardless of the prevailing welfare regime.     

Confusion behind the dikes

Twenty years ago Dutch society was hit by a serious rise of unemployment that put the Dutch welfare state to the test: Should the welfare state be able to preserve full employment and prevent unemployment from becoming high and chronic as in the 1930s? And should the welfare state be able to prevent mass poverty as in the 1930s? The answers are well known. The ‘Dutch welfare state has not been able to forestall persistent high unemployment and, in fact, has more or less produced a dual society (Zweidrit-telgesellschaft, sociéte à deux vitesses), although without producing mass poverty. This article goes into three issues related to these developments. A bird's-eye view is presented of the unemployment trajectory of the 1970s, 1980s and the first half of the 1990s. The position of the Netherlands relative to other countries in Europe is unfolded. Some issues concerning the effects of chronic unemployment on the functioning of the Dutch political economy are presented.     

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.     

Unemployment in Spain

This article describes the problem of unemployment in Spain and its recent evolution. Data on unemployment in relation to economic growth and some basic demographic characteristics are presented. We also analyze programs designed to reduce unemployment and others to protect unemployed people as different aspects of developing the welfare state in Spain. The framework for analyzing the welfare state is the evolution of industrial relations. Other problems about unemployment are analyzed, including geographical disparities between northern and southern Spain, where rural unemployment is especially severe. We offer an overall perspective on the problem and the government initiatives to ameliorate it.     

Differentiation of welfare regimes: The case of Italy

The different welfare system classifications mainly address systems on the national level, while the local levels have not been considered in any great detail. The welfare reform measures adopted in some countries have led to more autonomy on the local level. Consequently, local authorities have adopted different social policies and developed diverse welfare services. This article addresses the case of Italy and shows that classifying a welfare regime by considering only the national level can lead to important local features being missed that are indeed relevant for its classification. The units of analysis are the 20 administrative regions of Italy. The results demonstrate that the Italian welfare system is far from being a homogeneous system and that the resources available on the local level have a considerable effect on the level of the welfare services provided. These results show that more attention needs to be directed at the local level.     

Social investment,social service and the economic performance of welfare states

This article begins with an examination of the role of social services as the key instrument of social investment strategy, presenting an empirical analysis of its impact on economic performance. A pooled time series, cross‐section analysis was conducted with the data of 15 welfare states from 1990 to 2007 under the ‘social investment hypothesis’ that more social service orientedness brings about a greater positive effect on the economy. The results show that a larger share of social service spending in the total social expenditure – more social service orientedness – contributes to economic growth and labour market performance, whereas a larger aggregate size of the welfare state may have a negative effect on employment. In conclusion, this study suggests that the relatively ambiguous welfare strategy of social investment could be clarified as a ‘transition from income security to livelihood security’ in which emphasis is placed on social service. Key Practitioner Message: ● This study suggests that the key instrument of social investment strategy is social service; ● The results show that more social service orientedness contributes to economic growth and labour market performance.     

Analysing the Welfare State in Poland, the Czech Republic, Hungary and Slovenia: An Ideal-Typical Perspective

This article applies ideal-typical welfare state theory in analysing the recent transition and the current position of welfare state systems in Eastern Central Europe, taking the cases of Poland, the Czech Republic, Hungary and Slovenia. The article argues that Eastern Central European welfare state systems have returned to their historical and cultural roots of welfare state formation and development, to the time before the onset of state socialism in Soviet times. First, social security policies and social and labour laws were established when the vast bulk of Eastern Central European countries were member states of the Austro-Hungarian Empire, sharing the same political economy, legal system and culture. Over the last 20 years, the socialist system of employment-based social services and benefits has been replaced with Bismarckian-type social security policy and systems. While there are major alterations here and there – in ideal-typical perspective – the four countries under scrutiny share all the major traits of Continental European (Christian Democratic) welfare regimes .     

Public health care in the balance: exploring popular support for health care systems in the European Union

Which factors explain intra‐ and inter‐country variations in levels of public support for national health care systems within the European Union, and why? We propose that public opinion towards public health care is dependent on (1) the type of welfare state regime to which the various European welfare states belong, (2) typical features of the national care system and (3) individual social and demographic characteristics, which are related to self‐interest or morality oriented motives. To assess the explanatory power of these factors, data from the Eurobarometer survey series are analysed. Support for public health care appears to be particularly positively related to social‐democratic attributes of welfare states, whereas support drops with increasing degrees of liberalism and conservatism. Further, support for public health care proves to be associated with wider coverage and public funding of national care services. We also find higher levels of support in countries with scarce social services for children and the elderly, and larger proportions of female (part‐time) employment. Lastly, with respect to individual characteristics, we find remarkably little evidence for self‐interest oriented motives affecting the preference for solidary health care arrangements.