Description - The Economic Consequences of Rolling Back the Welfare State by Anthony B. Atkinson
This text warns that many late-1990s fashionable policy proposals to roll back the welfare state could have unintended negative side effects, based as they are on an oversimplified view of the workings of the economy and of how welfare arrangements affect economic incentives. The author asks whether there are ways in which the welfare state plays a positive role in the modernization of the economy. He develops models of the labour market and of the growth of the corporate economy, which provide insight into the role and consequences of unemployment insurance, and the implications of moves to private pension funds. A.B. Atkinson does not attempt to determine whether or not spending should be cut. Rather, his aim is to clarify the nature of the charges levelled against the welfare state.
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