Welfare states and inequality: Institutional designs and distributive outcome

Comparative studies on inequality have suffered from severe methodological problems, which mean that issues related to the causes of cross-national variation in inequality remain unresolved. In comparative welfare state research, the preoccupation with expenditure data has also meant that the welfare state itself has remained a black box. By examining new comparative data on social policy institutions and income inequality among different population groups, this study provides a more precise empirical basis for evaluating different, and divergent, theories on the welfare state and equality. Three cases will be used as illustrations: family policy and child poverty, unemployment benefits and poverty among working aged, and old-age pensions and poverty among the elderly. The results suggest that the key for understanding the effect of the welfare state lies in the institutional design—in the level and distribution of social rights. The importance of the welfare state for social stratification deserves to be given more attention by sociological research in the future.