Welfare state and social Europe

William H. Dow, Anna Godøy, Chris Lowenstein, Michael Reich, 07 July 2019

Policymakers and researchers have sought to understand the causes of and effective policy responses to recent increases in mortality due to alcohol, drugs, and suicide in the US. This column examines the role of the minimum wage and the earned income tax credit – the two most important policy levers for raising incomes for low-wage workers – as tools to combat these trends. It finds that both policies significantly reduce non-drug suicides among adults without a college degree, and that the effect is stronger among women. The findings point to the role of economic policies as important determinants of health. 

Minouche Shafik, 07 June 2019

This week UN special rapporteur claimed the UK's social safety net has been "replaced with a harsh and uncaring ethos". Dame Minouche Shafik, director of the LSE, talks to Tim Phillips about whether our welfare states can survive in their current form, and what might replace them.

Alberto Alesina, Elie Murard, Hillel Rapoport, 08 April 2019

A large literature shows that generosity, both public and private, is more freely extended within the same group rather than across groups. This column examines how immigration affects natives’ attitudes towards redistribution and the implications for welfare states in Europe. The main finding is that in regions which have received a larger share of immigrants, natives are in general less favourable towards redistribution. Some European countries face the dilemma of natives favouring generous welfare policies for themselves but opposing them for immigrants.

Satoshi Shimizutani, 14 January 2019

Social security reforms in advanced economies may give people incentives to work past retirement age. The column estimates the financial incentives to work or retire at each age for elderly men and women in Japan. There is a correlation between series of social security reforms to reduce generosity and the recent recovery of employment rates for men aged 60-69 and for women aged 55-64.

Jacques Bughin, Christopher Pissarides, 02 January 2019

Europe’s social contracts to protect their citizens from socioeconomic risks are based on an inclusive growth model characterised by a more egalitarian view of revenue generation and distribution. But this model is under strain, with various global trends placing upward pressure on inequality that could intensify. This column suggests that keeping the essence of Europe’s current inclusive growth model does not preclude it from adapting its current social contracts to protect its citizens, whatever the disruptions that lie ahead.

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