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OECD recommends: A consensus for or against welfare states? Evidence from a new database

Bergh, Andreas LU and Dackehag, Margareta LU (2010) In Ratio Working Papers
Abstract
We describe the policy consensus in the OECD publication Economic Surveys, by constructing a database that contains both quotations and a quantification of the perceived reform need for 23 OECD countries around 1985, 1995 and 2005. Using the database, we examine whether or not the policy recommendations given by the OECD require welfare state cutbacks. We also examine how reform need correlates with social expenditure and income inequality. The recommendations in OECD Economic Surveys describe a policy consensus based on competition, work incentives, monetary reform, fiscal discipline and labor market reform. Reforms in these areas do not necessarily require welfare state cutbacks. Quantitatively, we find a significant positive correlation... (More)
We describe the policy consensus in the OECD publication Economic Surveys, by constructing a database that contains both quotations and a quantification of the perceived reform need for 23 OECD countries around 1985, 1995 and 2005. Using the database, we examine whether or not the policy recommendations given by the OECD require welfare state cutbacks. We also examine how reform need correlates with social expenditure and income inequality. The recommendations in OECD Economic Surveys describe a policy consensus based on competition, work incentives, monetary reform, fiscal discipline and labor market reform. Reforms in these areas do not necessarily require welfare state cutbacks. Quantitatively, we find a significant positive correlation between reform need and social expenditure only for the mid 1990s, and no significant correlations between reform need and inequality. We conclude that OECD countries with large welfare states have managed to implement reforms without substantial welfare state retrenchment. The policy recommendations in Economic Surveys imply a restructuring of the welfare state but not necessarily welfare state cutbacks. (Less)
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author
organization
publishing date
type
Working Paper
publication status
submitted
subject
keywords
reform, Welfare state, OECD
in
Ratio Working Papers
issue
159
pages
15 pages
publisher
Ratio
language
English
LU publication?
yes
id
a382c6f5-73b8-4a74-998c-3c6b0dd9479e (old id 1763501)
alternative location
http://swopec.hhs.se/ratioi/abs/ratioi0159.htm
date added to LUP
2011-01-21 15:24:56
date last changed
2016-04-16 10:21:40
@misc{a382c6f5-73b8-4a74-998c-3c6b0dd9479e,
  abstract     = {We describe the policy consensus in the OECD publication Economic Surveys, by constructing a database that contains both quotations and a quantification of the perceived reform need for 23 OECD countries around 1985, 1995 and 2005. Using the database, we examine whether or not the policy recommendations given by the OECD require welfare state cutbacks. We also examine how reform need correlates with social expenditure and income inequality. The recommendations in OECD Economic Surveys describe a policy consensus based on competition, work incentives, monetary reform, fiscal discipline and labor market reform. Reforms in these areas do not necessarily require welfare state cutbacks. Quantitatively, we find a significant positive correlation between reform need and social expenditure only for the mid 1990s, and no significant correlations between reform need and inequality. We conclude that OECD countries with large welfare states have managed to implement reforms without substantial welfare state retrenchment. The policy recommendations in Economic Surveys imply a restructuring of the welfare state but not necessarily welfare state cutbacks.},
  author       = {Bergh, Andreas and Dackehag, Margareta},
  keyword      = {reform,Welfare state,OECD},
  language     = {eng},
  number       = {159},
  pages        = {15},
  publisher    = {ARRAY(0x8636eb0)},
  series       = {Ratio Working Papers},
  title        = {OECD recommends: A consensus for or against welfare states? Evidence from a new database},
  year         = {2010},
}