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Social Norms and Welfare State Dynamics

Author

Listed:
  • Lindbeck, Assar

    (The Research Institute of Industrial Economics)

  • Nyberg, Sten

    (Stockholm University)

  • Weibull, Jörgen W.

    (Boston University)

Abstract

The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population share of beneficiaries is higher, then voters will choose less generous benefits than otherwise. We also discuss welfare-state dynamics when there is a time lag in the adjustment of the norm in response to changes in this population share, and show how a temporary shift in the unemployment rate may cause persistence in the number of beneficiaries.

Suggested Citation

  • Lindbeck, Assar & Nyberg, Sten & Weibull, Jörgen W., 2002. "Social Norms and Welfare State Dynamics," Working Paper Series 585, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0585
    as

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    References listed on IDEAS

    as
    1. Assar Lindbeck & Sten Nyberg, 2006. "Raising Children to Work Hard: Altruism, Work Norms, and Social Insurance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1473-1503.
    2. Michihiro Kandori, 2003. "The Erosion and Sustainability of Norms and Morale," The Japanese Economic Review, Japanese Economic Association, vol. 54(1), pages 29-48, March.
    3. Samuel Bowles & Herbert Gintis, 2000. "Reciprocity, Self-Interest and the Welfare State," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 33-53.
    4. Besley, Timothy & Coate, Stephen, 1992. "Understanding welfare stigma: Taxpayer resentment and statistical discrimination," Journal of Public Economics, Elsevier, vol. 48(2), pages 165-183, July.
    5. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Welfare State; Social Norms; Social Insurance;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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