The Convergence of Welfare State Indicators in Europe: Evidence from Panel Data

Abstract

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The Emergence of East Central Europe in a Welfare Regime Typology

“…One explanation for these contrasting findings is that convergence is not a general phenomenon among the rich societies of the world, but instead a place-specific phenomenon among societies undergoing regional integration. The converging trend of public social expenditure has continued in European countries and over time (Caminada et al, 2001;Starke et al, 2008;Schmitt & Starke, 2011, Paetzold, 2013.…”

“…Analysing the scenarios of convergence, on the one hand, one wave of the literature predicts a downward convergence in welfare provisions due to unfettered market forces and increased economic competition. To fit the challenges of post industrialisation, spending on education, as well as technologically advanced and well-functioning infrastructure, cannot be the target of major cuts; thus social policy, welfare state services may have to carry the burden of austerity (Paetzold, 2013).…”

“…These processes result in a situation in which welfare state laggards (such as the Mediterranean and CEE model, even the Anglo-Saxon) experience above average growth in social spending, whereas welfare frontrunners (Nordic and Continental) cut their social spending. Consequently, social provisions should become more similar over time (Paetzold, 2013).…”

“…Moreover, the institutional divergence argument assumes that once a welfare programme is installed, it is difficult to remove it. There are ongoing divergent welfare efforts resulting in a conservation of the existing varieties in welfare capitalism (Paetzold, 2013).…”

“…"According to this old politics approach, socio-economic problems do not necessarily lead to convergence, since pressures always require political mediation" (Starke et al, 2008: 979). Consequently a general "race to the bottom" scenario is rejected; instead, ongoing divergent responses depending on the different involved political powerbrokers are expected (Paetzold, 2013).…”