The future of the Welfare State

This paper explores the tension within advanced capitalist economies between the growing need for social security and emerging pressures to scale back the Welfare State. Empirical evidence related to recent Welfare State developments is surveyed along three dimensions: (1) summary statistical indicators of state redistribution efforts; (2) specific policy areas that affect the level of employment, distribution of employment, distribution of earnings, and redistribution of income; and (3) public management practices. The results show that the primary building blocks of the postwar Welfare State have eroded significantly. Important design considerations for future Welfare State reforms are then discussed.