Published on August 18, 2007
Towards Productive Welfare? A Comparative Analysis of Welfare State Effort in 23 OECD Countries John Hudson & Stefan Kühner University of York, UK Australian Social Policy Conference 2007
Productive Welfare • Challenges: Globalisation, Knowledge Economy • Response: Investment in Human Capital? – Active Labour Market Policies – Education • Variously: – A new type of welfare regime – A reorientation of welfare state – Neglected dimension of welfare state modelling – Incompatible with strong social protection – Compatible with strong social protection
Welfare State Modelling • Esping-Andersen dominates – Three Worlds of Welfare – Focus on social rights – Decommodification Index (+) • Protective not Productive Dimensions • Distinct & Differing Dimensions?
Multi-Dimensionality • How best to capture the welfare state? • Dependant variable problem: – How to capture the multidimensional character of welfare states? • Decommodification index: – One dimensional? – Too narrow? • Means mask important differences → ‘compensation effects’: – Standardised aggregated indices, factor analysis, cluster analysis • Solution: Fuzzy Set Ideal Type Analysis
Fuzzy Sets • Cases have varying membership of sets – 0 Fully Out – 1 Fully In • Boundaries of sets drawn conceptually – Not all variation matters – Reflect substantive knowledge
Fuzzy Set Ideal Type Analysis • Combines n-fuzzy sets to categorise ideal types • Number of types determined conceptually Generous – 2k property spaces Redistributive GR ~GR • Establishes membership G~R ~G~R of types via Boolean logic
Productive-Protective Types • Four Fuzzy Sets: – Protective: • Income Protection • Employment Protection – Productive: • Investment in Education • Investment in Labour Market Training
Operationalising Our Sets Productive: • Education spending as share of public social & education spending • Training component of ALMP budgets as share of total ALMP budgets Protective: • Net replacement rates for single, long-term unemployed • OECD Employment Policy Legislation (EPL 2) Index Sample: • 23 Countries • 1994, 1998, 2003
Productive-Protective Types Productive Protective Productive-Plus Protective-Plus Weak Productive Protective Productive Protective Weak Productive Weak Protective Weak
Findings: 2003 Productive-Protective Finland Productive-Plus Protective-Plus Denmark Sweden Norway Netherlands Austria Finland Productive Weak-Product-Protective Protective Greece Belgium United States Germany Ireland New Zealand Switzerland Italy Weak-Productive Weak-Protective Korea Canada Spain France Czech Republic Japan Portugal Weak United Kingdom Australia United Kingdom
Findings: Time-Series 1994 1998 2003 Productive-Protective Productive-Plus NOR NZ Productive USA Weak-Productive SWE Protective-Plus NET AUT Weak-Productive-Protective SWI Protective BEL Weak-Protective SPA Weak
Findings: Time-Series 1994 1998 2003 Productive-Protective FIN Productive-Plus DEN Productive Weak-Productive Protective-Plus GRE Weak-Productive-Protective ITA Protective Weak-Protective Weak
Findings: Time-Series 1994 1998 2003 Productive-Protective Productive-Plus Productive Weak-Productive CAN Protective-Plus Weak-Productive-Protective KOR IRE GER Protective CZR Weak-Protective JAP POR FRA UK Weak AUS
Conclusions • Utility of fuzzy set ideal type analysis • East Asian states not the exemplars of productivism • Protective & Productive dimensions can be combined • Finland and the USA alternate models? • Little evidence of general shift towards productivism
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