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Author:Lindbeck, A.
Nyberg, S.
Weibull, J.W.
Title:Social norms and welfare state dynamics
Journal:Journal of the European Economic Association
2003 : APR-MAY, VOL. 1:2-3, p. 533-542
Index terms:Incentives
Social security
Welfare state
Language:eng
Abstract:The interaction between economic intencives and work norms are analysed 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. Also welfare state dynamics are discussed when there is a time lag in the adjustment of the norm in response to changes in this population share, and it is shown how a temporary shifth in the unemployment rate may cause persistence in the number of beneficiaries.
SCIMA record nr: 249791
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