Social Policy Attitudes and Social Capital in Europe
Edited by Heikki Ervasti, Jørgen Goul Andersen, Torben Fridberg and Kristen Ringdal
Chapter 4: Economic Globalization, Personal Risks and the Demand for a Comprehensive Welfare State
4. Economic globalization, personal risks and the demand for a comprehensive welfare state Henning Finseraas and Kristen Ringdal INTRODUCTION Citizens have various reasons to support comprehensive public welfare arrangements, but some stable patterns can be identified. One part of the systematic element of welfare state support is related to whether people primarily benefit from or contribute to the financing of public welfare, with low income and low-skilled workers being particularly supportive of public welfare. A vast amount of research documents this as being the case regarding support for government redistribution of income (e.g. Cusack et al., 2006). Recent research has shifted attention from the importance of the prevailing economic situation to the importance of beliefs about changes in income. Consistent with this, the objective risk of income loss seems to drive preferences for government redistribution of income (Rehm, 2009; Alesina and Guiliano, 2009). One strand of this literature highlights how beliefs about increased income make some current beneficiaries of generous welfare arrangements less supportive of these arrangements; because they expect to be net contributors in the future and/or view extensive government activity as a hindrance to their own mobility (see Alesina et al., 2001, pp. 25–7). This chapter contributes to the related literature on how the objective and perceived risks of future income loss are related to welfare state preferences. We add to this literature by going beyond preferences for redistribution and examine how the objective and subjective risks of income loss are related to preferences regarding the scope...
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