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The politics of incremental change: institutional change in old-age pensions and health care in Germany
[Die Politik der schrittweisen Veränderung: Institutioneller Wandel bei Altersrenten und Gesundheitsversorgung in Deutschland]

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  • Karen M. Anderson

    (University of Southampton)

Abstract

This paper analyzes policy shifts in two core welfare state programs in Germany: old-age pensions and health care. Both programs are prototypes of Bismarckian/conservative program design (benefits are based on occupational and family status; financing is based on payroll contributions, and administration is based on corporatist arrangements) and both have experienced tremendous cost pressures because of demographic change and rising non-wage labor costs. A series of reforms since the late 1980s has reduced the generosity of benefits and aims to change the governance structures of both programs. Although the reforms include substantial benefit cuts, key conservative principles concerning benefit entitlement and financing remain largely untouched. In both programs, derived rights based on family status remain strong, and occupational fragmentation continues to characterize the overall structure of both systems. The paper argues that this pattern of institutional change is not new, but is typical of the politics of muddling through that has characterized the German system since its inception. I emphasize the impact of German political institutions, the structure of electoral competition, and the legacies of conservative social policy to explain the contemporary pattern of policy development.

Suggested Citation

  • Karen M. Anderson, 2015. "The politics of incremental change: institutional change in old-age pensions and health care in Germany [Die Politik der schrittweisen Veränderung: Institutioneller Wandel bei Altersrenten und Gesu," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(2), pages 113-131, August.
    • Handle: RePEc:spr:jlabrs:v:48:y:2015:i:2:d:10.1007_s12651-015-0180-y
    DOI: 10.1007/s12651-015-0180-y
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    References listed on IDEAS

    as
    1. Anderson, Karen M. & Meyer, Traute, 2003. "Social Democracy, Unions, and Pension Politics in Germany and Sweden," Journal of Public Policy, Cambridge University Press, vol. 23(1), pages 23-54, January.
    2. Trampusch, Christine, 2009. "Der erschöpfte Sozialstaat: Transformation eines Politikfeldes," Schriften aus dem Max-Planck-Institut für Gesellschaftsforschung Köln, Max Planck Institute for the Study of Societies, volume 66, number 66.
    3. Bruno Palier & Kathleen Thelen, 2010. "Institutionalizing Dualism: Complementarities and Change in France and Germany," Politics & Society, , vol. 38(1), pages 119-148, March.
    4. Gerlinger, Thomas, 2002. "Zwischen Korporatismus und Wettbewerb: Gesundheitspolitische Steuerung im Wandel," Discussion Papers, Research Group Public Health P 02-204, WZB Berlin Social Science Center.
    5. Schludi, Martin, 2005. "The Reform of Bismarckian Pension Systems," University of Chicago Press Economics Books, University of Chicago Press, number 9789053567401.
    6. Schmidt, Manfred G., 1987. "West Germany: The Policy of the Middle Way," Journal of Public Policy, Cambridge University Press, vol. 7(2), pages 135-177, April.
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