Economic growth is deflating the welfare state
(English)Manuscript (preprint) (Other academic)
Differences in economic growth is one of the primary explanations for why welfare state retrenchment has occurred in some countries and not others. Because public spending is only partially indexated to earnings, the welfare state shrinks as the economy prospers. Using growth data from countries with synchronized business cycles as an instrument, I demonstrate that the relationship can be interpreted as a causal effect of growth on both tax ratios and social spending.
Political Science (excluding Public Administration Studies and Globalization Studies)
Research subject Political Science
IdentifiersURN: urn:nbn:se:uu:diva-274341OAI: oai:DiVA.org:uu-274341DiVA: diva2:896313