Presentation on theme: "Welfare states Sweden in comparative context. How welfare states differ Minimalist v. maximalist: –Safety net below which none (or few?) are allowed."— Presentation transcript:
How welfare states differ Minimalist v. maximalist: –Safety net below which none (or few?) are allowed to fall v. –Guarantees higher level of well-being, social protection Universality Treatment of women Equality of entitlements Scope of coverage Insurance-based or funded from gov’t revenue Pro-active v. reactive: –is economic activity rewarded or inactivity cushioned? Ideological foundations: –Social Democratic, Christian Democratic, (Progressive) Liberal, or mixed?
Scope Basic safety net or is social protection extend to Health care Housing Education Entry into labour market Overall well-being
Relationship to economic management Finance –from general revenue –via build-up of special funds Role of Keynsianism –Successful counter-cyclical mgmt > hi or full employment > less need to use certain entitlements & sufficient revenue to finance Encourage activity via labour market policies? –apprenticeships –Training & retraining
Some cases: UK: –minimalist, –Equal: flat-rate benefits and financing –Initially liberal, but increasingly mixed, with public- private partnerships (Thatcher & Blair innovations) –Included housing –Universal health care France: lower levels, uneven, Italy: uneven, family as backup
Germany & Netherlands Germany Universal but unequal Insurance-based Complex: multiple programs & levels of protection Labour market component –rely on handwerk: apprenticeships run by unions & employers associations Netherlands: Universal but unequal Insurance based Complex Changing: shift from reactive to active labour market policies –work-experience jobs –Training –Attempt to get unemployable employed Health insurance: –minimum coverage universally required –top-up policies possible Public-’private’ partnerships
Sweden Universal & generally equal –‘superannuated’ pensions as exception Shaped by Social Democrats Broad protection Emphasis on activity, participation Use of –active labour market policies –Solidaristic wage policies Housing
Wage & labour market policies Active labour market policies –Managed by unions & employers assoc. –Emphasis on retraining & re-entry –Tied to unemployment benefits –Supplement by public sector employment Investment of pension funds in housing stock Solidaristic wage policies: –Centrally negotiated –Insist on high average wage Force firms relying on lower wages out of business Hold wages down in higher value-added industries Encourage ‘creative destruction’
Sweden continued: Swedish model based on increasingly strained social partnership with low level of public ownership: Basic Presumption: –LO & Soc Democrats can pursue social goals –Employers and owners can earn profit Result in –Shift to higher value-added industries –concentration of ownership & capital
Friction points: limits of consensus Pension debate (1956) –Superannuation (earnings-based pensions) Voluntary or compulsory? Private or public? Level of taxation required Co-determination (1970s) –LO & SD demand for union-managed wage-earners- funds, eventual co-ownership of industry Desirability of central wage bargaining (ends in 1990)
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