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Globalization and the Welfare State: A Review of Hans-Werner Sinn's Can Germany Be Saved?

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  • Dennis J. Snower
  • Alessio J. G. Brown
  • Christian Merkl

Abstract

What are the challenges that globalization makes on welfare states and how should welfare states respond? How should welfare states be designed to enable countries to reap the benefits of globalization? These are the main themes of Hans-Werner Sinn's book, Can Germany Be Saved? We view Germany as a case study of how a welfare state can go wrong in reacting to the pressures of globalization. We present two views of globalization -- the "specialization view" (of Sinn) and the "Great Reorganization view" (ours) -- and examine the policy implications of each for the welfare state design.

Suggested Citation

  • Dennis J. Snower & Alessio J. G. Brown & Christian Merkl, 2009. "Globalization and the Welfare State: A Review of Hans-Werner Sinn's Can Germany Be Saved?," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 136-158, March.
    • Handle: RePEc:aea:jeclit:v:47:y:2009:i:1:p:136-58
    Note: DOI: 10.1257/jel.47.1.136
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    Cited by:

    1. Vallizadeh E. & Muysken J. & Ziesemer T.H.W., 2015. "Offshoring of medium-skill jobs, polarization, and productivity effect: Implications for wages and low-skill unemployment," MERIT Working Papers 2015-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Brown, Alessio J. G. & Snower, Dennis J., 2009. "Incentives and complementarities of flexicurity," Kiel Working Papers 1526, Kiel Institute for the World Economy (IfW Kiel).
    3. Jacob Funk Kirkegaard, 2014. "What Should Surplus Germany Do?," Policy Briefs PB14-14, Peterson Institute for International Economics.
    4. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    5. David B. Audretsch & Erik E. Lehmann, 2016. "Industrial policy in Italy and Germany: yet another look," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 291-304, September.
    6. Lothar Funk, 2010. "Die europäische Flexicurity-Strategie : ein Überblick zu wichtigen Vor- und Nachteilen. The European Flexicurity-Strategy : A Survey on Important Pros and Cons," Duesseldorf Working Papers in Applied Management and Economics 15, Duesseldorf University of Applied Sciences.
    7. Vallizadeh, Ehsan & Muysken, Joan & Ziesemer, Thomas, 2016. "Offshoring Medium-Skill Tasks, Low-Skill Unemployment and the Skill-Wage Structure," MPRA Paper 75581, University Library of Munich, Germany.
    8. Lothar Funk, 2010. "Die europäische Flexicurity-Strategie : ein Überblick zu wichtigen Vor- und Nachteilen. The European Flexicurity-Strategy : A Survey on Important Pros and Cons," Duesseldorf Working Papers in Applied Management and Economics fobe15, Duesseldorf University of Applied Sciences.
    9. Görlich, Dennis, 2010. "Complementary tasks and the limits to the division of labour," Kiel Working Papers 1670, Kiel Institute for the World Economy (IfW Kiel).
    10. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).
    11. Susanna Thede, 2012. "What Can We Learn From Trade-Theoretic Research on Offshoring and Social Insurance?," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 523-524, December.
    12. Godart, Olivier & Görg, Holger & Hanley, Aoife, 2014. "Trust-Based Work-Time and Product Improvements: Evidence from Firm Level Data," IZA Discussion Papers 8097, Institute of Labor Economics (IZA).
    13. Christian Keuschnigg & Thomas Davoine, 2010. "Flexicurity and Job Reallocation," University of St. Gallen Department of Economics working paper series 2010 2010-11, Department of Economics, University of St. Gallen.
    14. Görlich, Dennis & Snower, Dennis J., 2010. "Wage inequality and the changing organization of work," Kiel Working Papers 1588, Kiel Institute for the World Economy (IfW Kiel).
    15. Hans-Michael Trautwein & Finn Marten Körner, 2014. "German Economic Models, Transnationalization and European Imbalances," ZenTra Working Papers in Transnational Studies 28 / 2014, ZenTra - Center for Transnational Studies, revised Jan 2014.
    16. Susanna Thede, 2018. "A model of trade, task offshoring and social insurance," International Economics and Economic Policy, Springer, vol. 15(4), pages 787-802, October.
    17. Markus Leibrecht & Christian Bellak, 2009. "Does the impact of employment protection legislation on FDI differ by skill-intensity of sectors? An empirical investigation," Discussion Papers 09/21, University of Nottingham, GEP.
    18. Christian Merkl, 2022. "Perspektiven zum Bürgergeld [Perspectives on Germany’s Welfare Reform (“Bürgergeld”)]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(2), pages 86-89, February.
    19. Thomas Davoine & Christian Keuschnigg, 2015. "Flexicurity, Taxes and Job Reallocation," CESifo Working Paper Series 5302, CESifo.

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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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