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The Convergence of Welfare State Indicators in Europe: Evidence from Panel Data

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  • Paetzold, Jörg

    (University of Salzburg)

Abstract

This paper investigates whether there is a convergence in welfare state policies among the old EU member states. To identify such trends, we rely on pension and unemployment net replacement rates as well as on public social expenditures. Empirically, we use a sample of 14 economies (EU-15 excl. Lux.) between 1980 and 2005. The empirical findings reveal a presence of a convergence process, driven by strong catch-up of social protection levels in the Southern member states. Furthermore, convergence in replacement rates is substantially less pronounced than using spending data.

Suggested Citation

  • Paetzold, Jörg, 2012. "The Convergence of Welfare State Indicators in Europe: Evidence from Panel Data," Working Papers in Economics 2012-4, University of Salzburg.
    • Handle: RePEc:ris:sbgwpe:2012_004
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    3. Athanasios Athanasenas & Xanthippi Chapsa & Athanasios Michailidis, 2015. "Investigating Social Protection Convergence in the EU-15: A Panel Data Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 79-96.
    4. Bonasia, Mariangela & De Siano, Rita, 2019. "Financial crisis and the convergence of European welfare provision," MPRA Paper 97509, University Library of Munich, Germany.

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    More about this item

    Keywords

    social protection; convergence; pension & unemployment replacement rates; Europeanization; welfare state;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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